The British pound recently had an eight-month low following the Federal Reserve’s increase of the interest rates in the United States. The GBP/USD reached 1.4950 in early morning trading on Friday, but quickly retreated, and is down to 1.4897. The currency is currently down 0.03% against the dollar.
The dollar has increased since the announcement from the Federal Reserve, and the strength of the US economy has caused the dollar to continue to rise in Q4. Optimism over the strength of the United States economy continues to rise as jobless claim benefits fell by an additional 11,000 on December 11, down to 271,000.
News from the United Kingdom’s Office for National Statistics raised optimism for the UK’s economy after reports that retail sales increased 1.7% in the month of November. Forecasts initially had gains at just 0.5%. Retail sales rose at a rate of 5% in the month of November, beating out expectations of a 3.0% gain.
Several of the world’s currencies are suffering from the after-effects of the Federal Reserve’s decision to increase interest rates. Thailand’s currency is expected to fall further as China’s currency is expected to ease between 5% and 6% in the coming quarter. The pound is also down against the euro 0.18% on Friday.