Pound Surges to Near 1.6150 After U.K. Emerges From Recession

The pound climbed the most in three weeks against the dollar after Britain's economy expanded by more than analysts forecast in the third quarter, pulling the nation out of a recession.

U.K. government bonds fell as the strongest growth in five years prompted economists at Barclays Plc and Investec Securities to abandon forecasts for the Bank of England to expand its bond-buying program next month. Sterling advanced to a one-week high versus the euro after central bank Deputy Governor Charles Bean said the economy was “past its worst.”

“The pound is getting a boost from the GDP data coming in quite a bit above market expectations,” said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley in London. “We could now see the pound strengthening more, particularly against the euro.”

via Bloomberg