Pound Gains against Euro

Great Britain poundThe British pound rose against the euro today along with some other major currencies as the euro suffers from the trade balance deficit, while the traders long for some high-yielding European currency, which the pound still is.

Eurostat agency reported that the November 2008 trade balance deficit of the European Union countries was at €7 billion compared to €2.3 billion surplus in November 2007. That statistics hurt the euro as the market paritcipants expected that the trade balance would have a surplus of about €1 billion this November.

While the Eurozone’s stats aren’t impressive, the traders a feeling very risk-hungry today after the growth in the U.S. and Asian stock markets during the latest sessions. The Great Britain pound is one of the currencies that can allow the traders to gain their «safe risk». That’s why the pound is currently showing 3rd day of growth against the euro.

EUR/GBP fell from 0.8967 to 0.8895 as of 11:23 GMT today. GBP/USD went up from 1.4651 to 1.4930, while GBP/JPY advanced from 131.62 to 135.18 today.