Pound Advances As U.K. GDP Tops Expectations
April 10 2019 - 2:27AM
RTTF2
The pound climbed against its major counterparts in early
European deals on Wednesday, after a data showed that U.K. economic
growth and industrial production beat estimates in February,
signaling some economic acceleration at the start of year.
Data from the Office for National Statistics showed that the UK
economy grew 0.2 percent month-on-month in February, after rising
0.5 percent in the previous month. Economists had expected the
growth to be flat.
On a 3-month-on-3-month basis, GDP rose 0.3 percent in February,
unchanged from the previous month.
Separate data showed that industrial production was steady at
0.6 percent in February. Economists were looking for a 0.1 percent
growth.
Manufacturing output grew 0.9 percent after an 0.8 percent rise
in January. Economists had expected a 0.2 percent decline.
European Shares inched higher as investors awaited the EU's
crucial Brexit summit as well as the European Central Bank's latest
interest rate decision.
European Council president Donald Tusk is asking the EU to
consider offering the UK a "flexible" delay to Brexit of up to a
year, with the option of leaving earlier if a deal is ratified.
The currency has been trading in a positive territory against
its major counterparts in the Asian session.
The pound strengthened to 0.8612 against the euro, from a low of
0.8634 hit at 5:15 pm ET. The next possible resistance for the
pound is seen around the 0.85 level.
The pound appreciated to 1.3085 against the greenback, following
a decline to 1.3042 at 5:15 pm ET. The pound is seen finding
resistance around the 1.32 level.
The U.K. currency rose to 145.44 against the yen, after dropping
to 144.93 at 5:00 pm ET. On the upside, 148.00 is possibly seen as
the next resistance level for the pound.
Data from the Bank of Japan showed that Japan overall bank
lending rose 2.4 percent on year in March, coming in at 535.367
trillion yen.
That follows the 2.3 percent annual increase in February.
The pound reversed from an early low of 1.3038 against the
franc, rising to 1.3094. Next key resistance for the pound is seen
around the 1.33 level.
Looking ahead, the European Central Bank announces its interest
rate decision at 7:45 am ET. Economists expect the refi rate to be
kept at 0.00 percent and the marginal lending facility rate at 0.25
percent.
In the New York session, U.S. CPI and monthly budget statement
for March, as well as the Fed minutes from the March meeting are
set for release.
At 11:50 am ET, Federal Reserve Governor Randal Quarles will
give a speech about the progress on the transition to risk-free
rates at the Financial Stability Board Roundtable in Washington
DC.
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