Pound Advances As European Stocks Rise
January 04 2022 - 1:21AM
RTTF2
The pound climbed against its key counterparts in the European
session on Tuesday, as investors shrugged off economic risks from
the spread of the Omicron variant of the coronavirus.
European stocks edged higher on hopes that the global economy
can weather the new wave of infections caused by the Omicron
variant.
Oil prices rose ahead of a meeting of the Organisation of the
Petroleum Exporting Countries and its allies to discuss its
existing plan to boost output in February.
The alliance is expected to proceed with its plan to increase
output by 400,000 barrels per day.
Data from the British Retail Consortium showed that UK shop
prices grew at a faster pace in December.
Shop prices climbed 0.8 percent on a yearly basis in December,
following a 0.3 percent gain in November, which was the first rise
in two-and-a-half years.
Data from the Bank of England showed that UK mortgage approvals
declined to the lowest level in more than a year in November, while
consumer credit increased at a faster pace.
The number of mortgages approved in November declined to 66,964
from 67,103 in the previous month. This was the lowest since June
2020. The expected level was 65,400.
The pound was up at more than a 2-month high of 156.60 against
the yen and near a 2-year high of 0.8361 against the euro, off its
prior lows of 155.22 and 0.8395, respectively. The pound is likely
to find resistance around 160.00 against the yen and 0.82 against
the euro.
The pound touched near a 6-week high of 1.2413 against the
franc, rising from a low of 1.2358 hit at 1:15 am ET. Immediate
resistance for the pound is seen around the 1.26 level.
The pound reached as high as 1.3514 against the greenback, up
from a low of 1.3459 it logged at 1:15 am ET. Next near term
resistance for the pound is likely seen around the 1.38 level.
Looking ahead, Canada industrial product price index for
November and U.S. ISM manufacturing PMI for December are set for
release in the New York session.
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