Pound Higher As U.K. Industrial Output Beats Forecasts, European Shares Rise
October 07 2015 - 1:49AM
RTTF2
The pound firmed against the other major currencies in European
deals on Wednesday, as European shares advanced, and U.K.
industrial output rebounded at a faster than expected pace in
August.
Data from the Office for National Statistics showed that
industrial output grew 1 percent from July, reversing a 0.3 percent
drop in the prior month. Economists had forecast a 0.3 percent rise
for August.
At the same time, manufacturing advanced 0.5 percent, partially
offsetting a 0.7 percent fall in July. It was faster than the
expected 0.3 percent increase.
European markets are trading higher, tracking gains from Asia,
following a sharp rally in oil prices. The oil was supported after
International Energy Agency slashed down its forecast for U.S.
crude output in 2015, while the American Petroleum Institute's data
showed declining crude stockpiles last week.
In the Asian session, the pound rose against the dollar and the
euro, but declined against the franc and the yen.
In European trading, the pound appreciated to 1.5311 against the
dollar, its strongest since September 23, and was up by 0.58
percent from Tuesday's closing value of 1.5223. If the pound-dollar
pair extends rise, it is likely to find resistance around the 1.545
level.
The pound spiked up to near a 2-week high of 183.78 against the
yen and a 9-day high of 0.7340 against the euro, off its early lows
of 182.50 and 0.7404, respectively. On the upside, the pound may
challenge resistance around 185.00 against the yen and 0.725
against the euro. The pound ended Tuesday's trading at 182.98
against the yen and 0.7399 against the euro.
The pound advanced to a 2-day high of 1.4812 against the Swiss
franc, off early 5-day low of 1.4712. The pair was valued at 1.4713
when it ended Tuesday's trading. The pound is seen finding
resistance near the 1.49 zone.
Looking ahead, Energy Information Administration's crude
inventory data for the week ended October 2 and U.S. consumer
credit for August are to be released in the New York session.
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