The U.K economy grew half as much as expected in the first quarter of this year, highlighting that Britain still continues to struggle with its recovery.
Britain's Prelim GDP report showed a 0.2% increase from the last quarter of 2009, when a 0.4% expansion pushed Britain out of the recession.
The pound tumbled 0.4% to $1.5318 following the report, from $1.5397. The British Forex currency managed to recovery against its U.S counterpart, to close the week at $1.53749, up 0.05% from the day’s opening price. The EUR/USD closed at 0.87027, down 0.82% from the day’s opening price of 0.86318.
The US dollar advanced for the first time in three weeks against the Japanese Yen on evidence of a global economic recovery including a surge in the U.S. housing market before next week’s Federal Reserve policy meeting. After hitting a high of 94.306, the USD/JPY closed the week at 93.957.
On Friday, the US Census Bureau reported that New-Home sales jumped 27% in March, the most since April 1963. A soon-to-expire tax break combined with low mortgage rates and favorable weather sent new home sales flying past market expectations 326K, to hit 411K.
However, the department of Commerce reported on Friday, that the demand for U.S.-made durable goods dropped for the first time in four months as orders for new aircraft plunged 67%. Orders for durable goods fell 1.3% in March to a seasonally adjusted $176.7 billion after a 1.1% gain in February. However, excluding transportation goods, the core rate showed a rise of 2.8% to $136.5 billion in March, the fastest increase since the recession began in December 2007.
Britain's Prelim GDP report showed a 0.2% increase from the last quarter of 2009, when a 0.4% expansion pushed Britain out of the recession.
The pound tumbled 0.4% to $1.5318 following the report, from $1.5397. The British Forex currency managed to recovery against its U.S counterpart, to close the week at $1.53749, up 0.05% from the day’s opening price. The EUR/USD closed at 0.87027, down 0.82% from the day’s opening price of 0.86318.
The US dollar advanced for the first time in three weeks against the Japanese Yen on evidence of a global economic recovery including a surge in the U.S. housing market before next week’s Federal Reserve policy meeting. After hitting a high of 94.306, the USD/JPY closed the week at 93.957.
On Friday, the US Census Bureau reported that New-Home sales jumped 27% in March, the most since April 1963. A soon-to-expire tax break combined with low mortgage rates and favorable weather sent new home sales flying past market expectations 326K, to hit 411K.
However, the department of Commerce reported on Friday, that the demand for U.S.-made durable goods dropped for the first time in four months as orders for new aircraft plunged 67%. Orders for durable goods fell 1.3% in March to a seasonally adjusted $176.7 billion after a 1.1% gain in February. However, excluding transportation goods, the core rate showed a rise of 2.8% to $136.5 billion in March, the fastest increase since the recession began in December 2007.
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