The British Pound Bounces on Expectations The U.K. Has Exited Recession

“The pound strengthened the most in more than three months against the euro as stocks rose on optimism the U.K. economy pulled out of recession in the third quarter, boosting demand for British assets.

Britain’s currency rose against all but one of its 16 major counterparts even after a report showed the nation’s manufacturing industry unexpectedly slumped in October. Gross domestic product expanded 0.6 percent last quarter from the previous three months, according to a Bloomberg survey before the data tomorrow. Bank of England Governor Mervyn King said yesterday the data may confirm a “zig-zag” pattern of recovery in the U.K. Gilts fell.”

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