Pound Rises Amid Risk Appetite
August 13 2015 - 5:58AM
RTTF2
The British pound strengthened against most major currencies in
the early European session on Thursday amid risk appetite, as
investor sentiment boosted after China's central bank assured
markets that it is not trying to start a currency war.
At a press conference held this morning in Beijing, the People's
Bank of China Assistant governor Zhang Xiaohui told that there was
no basis for continued depreciation in the yuan. While pledging to
improve the yuan's pricing mechanism, central bank officials
dismissed speculation of a possible yuan drop of 10 percent as
"groundless".
The U.K.'s FTSE 100 index is currently up 0.59 percent or 38.87
points at 6,610, France's CAC 40 index is down 1.57 percent or
77.50 points at 5,002 and Germany's DAX is down 1.14 percent or
124.57 points at 11,049.
Meanwhile, developments on Greece's third bailout is also
closely watched, as the Greek parliament is due to meet later today
to vote on the deal.
In the Asian trading today, the pound held steady against its
major rivals.
In the European trading now, the pound rose to 0.7103 against
the euro and 1.5291 against the Swiss franc, from early lows of
0.7156 and 1.5211, respectively. If the pound extends its uptrend,
it is likely to find resistance around 0.70 against the euro and
1.54 against the franc.
Against the yen, the pound edged up to 194.74 from an early low
of 193.87. On the upside, 196.00 is seen as the next resistance
level for the pound.
Meanwhile, the pound fell to 1.5603 against the U.S. dollar from
an early high of 1.5636. The pound may test support near the 1.54
area.
Looking ahead, the European Central Bank is set to publish the
minutes of its July policy meeting at 7:30 am ET.
In the New York session, U.S. advance retail sales data for
July, U.S. weekly jobless claims for the week ended August 8 and
Canada new housing price index for June are slated for release.
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