EURGBP Euro vs Pound Sterling

The pound was higher against its major rivals in early New York deals on Wednesday, after U.K. Chancellor of the Exchequer George Osborne lifted economic growth forecast for next year, while saying that Britain has seen the fastest growth among the G-7 nations since 2010.

Speaking to lawmakers in the House of Commons, Osborne argued that the economic growth had not been driven by an irresponsible banking boom, like in the last decade. "We're determined that this will be an economic recovery for all, felt in all parts of our nation," he claimed.

The Office for Budget Responsibility left its economic growth forecast unchanged at 2.4 percent for 2015. It raised its outlook for 2016 to 2.4 percent, from its July predictions of 2.3 percent growth.

However, Britain's budget deficit forecast has been widened to 3.9 percent of gross domestic product this year from 3.7 percent seen in July.

In other economic news, U.K. mortgage approvals increased in October and gross mortgage lending reached a seven year high, according to a report from the British Bankers' Association.

The number of mortgages approved in October rose to 45,437 from 44,825 in September. It was also below the expected level of 44,500.

The currency has been higher against most major rivals in European deals, amid a rise in European stocks.

Reversing from an early low of 1.5056 against the greenback, the pound rebounded to 1.5124. On the upside, the pound is likely to find resistance around the 1.52 mark.

Data from the Commerce Department showed that new orders for U.S. manufactured durable goods increased by much more than expected in the month of October.

The durable goods orders jumped by 3.0 percent in October after falling by a revised 0.8 percent in September.

The pound, having declined to 1.5308 against the Swiss franc at 2:45 am ET, edged up to 1.5420. The next resistance for the pound may possibly be found around the 1.55 level.

Figures from the UBS bank showed that Switzerland's consumption increased slightly in October, driven by better retail trade prospects along with brighter consumer confidence.

The consumption indicator rose to 1.60 in October from 1.56 in the previous month, which was revised down from 1.65.

The pound reached as high as 0.7016 against the euro, following a decline to 0.7080 at 2:55 am ET. The pound is seen finding resistance near the 0.69 zone.

Financial market risks stemming from emerging markets, especially China, are rising, while the limited direct exposure of the euro area banks to these markets reduces the impact, the European Central Bank said in a report.

"Occasional bouts of financial market volatility suggest that vulnerabilities stemming from emerging markets are increasing. Of particular concern is the outlook for China, given its growing role in the world economy," the ECB said in its latest bi-annual Financial Stability Review.

The pound climbed to 185.24 against its Japanese counterpart, up from 184.73 hit late New York Tuesday. If the pound extends rise, it may locate resistance around the 186.5 area.

Bank of Japan policymaker Sayuri Shirai said core inflation is likely to rise to the 2 percent target by around spring 2017, a delay of about a quarter from the official projection.

Core inflation will accelerate and reach about 1.7-1.8 percent, or rise closer to around 2 percent from the January to March 2017 to the April-June quarter, Shirai said.

Looking ahead, U.S. new home sales data for October, University of Michigan's final consumer sentiment index for November and U.S. crude oil inventories data are set to be published shortly.

Euro vs Sterling (FX:EURGBP)
Forex Chart
From Mar 2024 to Apr 2024

Euro vs Sterling (FX:EURGBP)
Forex Chart
From Apr 2023 to Apr 2024