Pound Remains Higher As U.K. GDP Growth Confirmed
August 26 2016 - 1:59AM
RTTF2
The pound remained strong against its key counterparts in
European trading on Friday, after data showed that U.K. economy
expanded at a faster pace in the second quarter as previously
estimated, in run-up to the EU referendum.
The second estimate from the Office for National Statistics
showed that gross domestic product grew 0.6 percent sequentially
after rising 0.4 percent in the first quarter. The growth figures
matched preliminary estimate published on July 27.
This was the 14th consecutive quarter of positive growth since
the first quarter 2013.
On a yearly basis, GDP rose 2.2 percent in the second quarter,
unrevised from previous estimate. In the first quarter, the annual
growth figure was 2 percent.
However, the pound's gains were capped on risk aversion, as
caution prevailed ahead of Fed Chair Janet Yellen's speech at
Jackson Hole later today on the economy and monetary policy.
Investors are looking for hints about trajectory of interest
rate hike from Yellen's address against the backdrop of improving
U.S. data, hawkish comments from several Fed officials and looming
global risks to the world's largest economy.
The currency exhibited mixed performance in Asian trading. While
the pound rose against the greenback and the yen, it held steady
against the euro and the franc.
The pound reached as high as 1.3233 against the greenback, up
from Thursday's closing value of 1.3189. If the pound extends rise,
it may challenge resistance around the 1.34 mark.
The pound that closed yesterday's trading at 132.55 against the
yen climbed to 133.02. The pound is seen finding resistance around
the 135.00 region.
Data from the Ministry of Internal Affairs and Communications
showed that Japan's consumer prices fell 0.4 percent on year in
July - in line with expectations and unchanged from June's annual
reading.
Core CPI, which excludes volatile food costs, slid 0.5 percent
on year - missing forecasts for -0.4 percent, which would have been
unchanged.
The pound climbed to 0.8528 against the euro and 1.2787 against
the franc in early deals and held steady thereafter. On the upside,
the pound is likely to test resistance around 1.30 against the
franc and 0.84 against the euro.
Looking ahead, the second estimate of U.S. second quarter GDP
data and the University of Michigan's final consumer sentiment
index for August are set for release in the New York session.
At 10:00 am ET, the Fed Chair Janet Yellen speaks at the Jackson
Hole symposium, Wyoming.
Euro vs Sterling (FX:EURGBP)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs Sterling (FX:EURGBP)
Forex Chart
From Sep 2023 to Sep 2024