Pound strengthens on back of strong economic performance

Ever since the EU referendum vote in June, the pound has been struggling over fears that the UK economy will flounder if it is not part of the single market.
But now the tide seems to be turning. The pound has spiked to a one-week high against the dollar after new economic data revealed that UK GDP grew by 0.5 per cent in the third quarter of this year.
It reached a high of $1.2263, although it has since dipped a little and is currently sitting at around $1.2236. But even that is still an increase of 0.06.
GDP within the UK has shown steady growth from 2000, until the economic crisis in 2008 and 2009, which didn’t just affect the UK, but also markets worldwide.
However, these latest quarter results are positive. They mark the 15th quarter in a row, of growth since the start of 2013. GDP is up by 2.3 per cent for the third quarter of 2016 compared to the same period last year.
For the quarter from July to September this year, GDP expanded by 0.5 per cent. That is not as strong as the previous quarter, which saw 0.7 per cent, but it is still above pessimistic forecasts from analysts which had been set at 0.3 per cent.
Chancellor Philip Hammond says these latest figures show just how strong and resilient the UK economy is.
He said: “We are moving into a period of negotiations with the EU and we are determined to get the very best deal for households and businesses. The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead.”
“Today, I’m visiting Southampton port which is a clear example of the outward-facing and globally connected nature of our economy. I am confident that our strong links with the rest of the world will stand us in good stead as we deliver an economy that works for everyone.”
Joe Grice, from the Office for National Statistics, which released the latest data, said there was little evidence that the aftermath of the Brexit vote had led to any pronounced effect on the economy.
Brexit supporters say this latest economic data shows that any worries over Britain’s economy from a vote to press ahead with a divorce from the EU are unfounded.