GBPUSD news - page 18
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
GBP/USD trims losses on BoE rate hike talk
The pound trimmed losses against the U.S. dollar on Thursday, supported by signs that the Bank of England is moving closer to a rate hike, although similar expectations in the U.S. continued to underpin demand for the greenback.
GBP/USD pulled away from 1.6276, the pair's lowest since September 18, to hit 1.6338 during U.S. morning trade, still down 0.02%.
Cable was likely to find support at 1.6244, the low of September 18 and resistance at 1.6416, Wednesday's high.
The pound strengthened after BoE Governor Mark Carney said that the argument for when to raise borrowing costs "has become more balanced."
Speaking at conference in Wales, Mr. Carney said that "with many of the conditions for the economy to normalize now met, the point at which interest rates also begin to normalize is getting closer."
"While there is always uncertainty about the future, you can expect interest rates to begin to increase," he added.
Also in the U.K., the Confederation of British Industry earlier reported that its index of realized sales fell to 31 this month, from a reading of 37 in August, compared to expectations for a decline to 30.
Meanwhile, the dollar remained supported after Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015.
Earlier Thursday, the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending September 20 increased by 12,000 to 293,000, from the previous week's revised total of 281,000.
Analysts had expected jobless claims to rise by 19,000 to 300,000 last week.
Separately, official data showed that U.S. durable goods orders dropped by 18.2% in August, after a revised increase of 22.5% in July. Analysts had expected durable goods orders to decline by 18.0% last month.
Core durable goods orders, which exclude transportation items, rose 0.7% last month, in line with expectations, after a 0.5% fall in July.
Sterling was near two-year highs against the euro, with EUR/GBP shedding 0.35% to 0.7795.
The euro came under broad selling pressure after European Central Bank President Mario Draghi reiterated on Thursday the bank's commitment to act with more policy measures to boost inflation in the euro zone.
On Wednesday, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
source
BoE's Carney Says Rate Hike May Be Getting Closer
Bank of England Governor Mark Carney said on Thursday that the U.K. economic outlook has improved and the central bank may be getting closer to raising interest rates.
Speaking at an actuaries' conference in Wales, Carney said, "With many of the conditions for the economy to normalize now met, the point at which interest rates also begin to normalize is getting closer."
"In recent months the judgement about precisely when to raise Bank Rate has become more balanced," he added.
The BoE Monetary Policy Committee split for a second straight session this month on holding the key interest rate steady at a record low 0.50 percent. Two policymakers repeated their call for a quarter-point hike, citing the rapid absorption of slack with economic growth.
"While there is always uncertainty about the future, you can expect interest rates to begin to increase," Carney said.
"We have no pre-set course, however; the timing will depend on the data."
Further, Carney said the timing of the first rate hike was less important because he said when rates do begin to rise, they are likely to be gradual and limited.
Inflation was the lowest since 2009 during August, at 1.5 percent. The figure has held below the BoE's target of 2 percent in every month thus far this year. The jobless rate fell to its lowest level since late 2008 during July.
The U.K. economy grew 0.8 percent in the second quarter, same as in the first quarter.
"Headwinds facing the economy are likely to take some time to die down," Carney said. "Demand in our major export markets remains muted."
Earlier today, BoE Deputy Governor Nemat Shafik said in an interview to Yorkshire Post that the euro are posed a 'significant risk' to the U.K. economy.
"Even when spare capacity is used up, Bank Rate will need to be materially lower than in the past in order to keep the economy operating at its potential and inflation at its target," Carney said.
Acknowledging that a prolonged period of historically low interest rates could encourage other risks to develop, Carney said the biggest risks came from the housing market.
He also pointed out the possibility that financial markets may be mispricing risk and urged the insurers' to watch for such risks.
source
U.K. August House Price Inflation Accelerates: Land Registry
U.K. house prices continued to increase at a faster pace in August, data published by the Land Registry showed Friday.
House prices rose 1 percent month-on-month in August after rising 2.1 percent in July.
On a yearly basis, house prices increased 8.4 percent in August, faster than the 7.5 percent rise seen in the prior month. A similar rate was last seen in September 2007.
As a result, average house prices in England and Wales reached GBP 177,824 in August compared to a peak of GBP 181,383 seen in November 2007.
The August data for London showed a monthly increase of 2.7 percent. At 21.6 percent, the annual change for London was considerably higher than other regions. Matthew Pointon, a property economist at Capital Economics, said more forward looking indicators suggest London is set for a rapid slowdown.
More recently housing demand has cooled considerably as buyers have baulked at the prices being demanded, and mortgage approvals have fallen back, the economist said. As market conditions ease, a period of more modest house price growth is likely.
source
Pound Climbs to Two-Year High Versus Euro After Carney Comments
The pound gained for a second week versus the euro to its strongest level in two years as the Bank of England moves toward raising interest rates, amid slower growth in the euro area where stimulus is being expanded.
Sterling advanced against most of its 16 major peers after BOE Governor Mark Carney said the point where interest rates “begin to normalize is getting closer.” It weakened versus the dollar as bets the Federal Reserve will raise rates next year boosted demand for the U.S. currency. U.K. 10-year government bonds posted their first weekly gain this month.
“Euro-sterling has been the real driver this week,” said Steven Saywell, the global head of foreign-exchange strategy at BNP Paribas SA in London. “You’ve had euro weakness and also relatively hawkish comments from Carney. That’s made the market re-think about the timing of the first U.K. rate hike. If you are bullish sterling, you want to play it short euro-sterling.”
The pound will appreciate to 76 pence per euro by year-end, BNP’s Saywell said.
The U.K. currency appreciated 0.9 percent this week to 78.08 pence per euro at 5:05 p.m. London time yesterday. It reached 77.85 pence on Sept. 25, the strongest level since July 2012. Sterling fell 0.2 percent to $1.6260.
“With many of the conditions for the economy to normalize now met, the point at which interest rates also begin to normalize is getting closer,” Carney said on Sept. 25. “While there is always uncertainty about the future, you can expect interest rates to begin to increase.”
read more
GBP/USD Forecast Sep. 29-Oct. 3
The British pound ended the week with slight losses, as GBP/USD closed the week at 1.6234. This week’s key events are Current Account and PMI. Here is an outlook on the major events moving the yen and an updated technical analysis for USD/JPY.
It was an uneventful week for the handful of British releases, which met expectations. The US economy continued to post strong numbers, as New Home Sales beat the estimate and GDP sparkled with a 4.6% gain in Q2.
* All times are GMT
Pound steady near 2-week lows against dollar
The pound was almost unchanged against the broadly stronger dollar on Monday, trading close to two week lows as investors looked ahead to a series of economic reports later in the week.
GBP/USD touched lows of 1.6215, the weakest since September 16 and was last down 0.13% to 1.6222.
Cable was likely to find support at the 1.6200 level and resistance at around 1.6330.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, touched a four year high of 85.93, and was last up 0.06% to 85.83, after notching up its eleventh consecutive weekly gain last week.
Demand for the dollar continued to be underpinned after data on Friday showed that the U.S. economy grew at an annual rate of 4.6% in the second quarter, the fastest pace in two-and-a-half years.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner.
Investors were looking ahead to economic data from the U.S., with Friday’s nonfarm payrolls report sharply in focus after August’s report fell short of expectations.
The U.S. was to release data on personal income and expenditure later Monday, followed by a report on pending home sales.
The U.K. was to publish reports on manufacturing and service sector growth later in the week.
Sterling rallied against the dollar in the first half of the year, rising to six year peaks of 1.7190 in mid-July, boosted by expectations that the robust recovery in the U.K. would see the Bank of England raise interest rates before then end of the year.
However, the dollar has rallied in the past two months amid expectations that the Fed is growing closer to hiking rates.
Elsewhere, EUR/GBP edged up 0.10% to 0.7815, not far from the two year lows of 0.7784 struck last Thursday.
read more
U.K. final Q2 GDP revised up to 0.9% from 0.8% estimate
The U.K. economy grew more than initially expected in the three months to September, fuelling optimism over the health of the economy, official data showed on Thursday.
In a report, the U.K.’s Office for National Statistics said gross domestic product expanded at a seasonally adjusted rate of 0.9% during the second quarter, above expectations for a 0.8% reading and up from a previous estimate of 0.7%.
Annualized GDP grew at a rate of 3.2% in the second quarter, in line with expectations and unchanged from a previous forecast.
Total business investment rose by a seasonally adjusted 3.3% in the second quarter, compared to a previous forecast for a 0.9% gain.
GBP/USD was trading at 1.6244 from around 1.6266 ahead of the release of the data, while EUR/GBP was at 0.7800 from 0.7791 earlier.
Meanwhile, European stock markets remained mixed. London’s FTSE 100 shed 0.1%, the DJ Euro Stoxx 50 tacked on 0.25%, France's CAC 40 added 0.4%, while Germany's DAX inched up 0.1%.
source
U.K. Economy Expands More Than Estimated In Q2
The U.K. economy grew more than estimated in the second quarter and the current account deficit widened from the first quarter, the Office for National Statistics said Tuesday.
Gross domestic product grew 0.9 percent sequentially, up from the prior estimate of 0.8 percent. The annual growth was confirmed at 3.2 percent.
GDP was 2.7 percent higher than the pre-economic downturn peak of 2008 instead of 0.2 percent.
The peak to trough fall of the economic downturn in 2008/2009 was estimated to be 6 percent. Previously this was estimated to be 7.2 percent.
The estimates in this bulletin have moved from the European System of Accounts 1995 (ESA95) to the European System of Accounts 2010.
Samuel Tombs, a senior UK Economist at Capital Economics said the significant revisions to the U.K.'s national accounts have not changed the fundamental picture that the economy's performance since the recession began in 2008 has been very weak by historical and international standards.
The current account deficit increased to GBP 23.1 billion in the second quarter from a revised shortfall of GBP 20.5 billion in the first quarter. The second quarter deficit equated 5.2 percent of GDP.
The widening of the current account deficit was due to a widening in the deficits on the primary and secondary income accounts, partially offset by an improved trade deficit, it said.
In a separate communique, the ONS said business investment was at its highest level since 2005 in the second quarter. Business investment rose GBP 1.4 billion or 3.3 percent from the first quarter. On a yearly basis, investment gained 11 percent, the largest growth since the first quarter of 2007.
The index of services increased by 3.4 percent in July from last year, another report from ONS showed. On a monthly basis, output gained 0.3 percent, the fourth consecutive 0.3 percent rise.
source
GBP/USD falls on downbeat U.K. PMI
The pound fell against the U.S. dollar on Wednesday, weighed by data showing that manufacturing activity in the U.K. expanded at the slowest pace in 17 months in September.
GBP/USD hit 1.6162 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 1.6171, sliding 0.26%.
Cable was likely to find support at 1.6050, the low of September 10 and resistance at 1.6288, Tuesday's high.
Markit research group said that the U.K. manufacturing purchasing managers' index fell to 51.6 in September from a reading of 52.2 in August, whose figure was downwardly revised from a previously estimated reading of 52.5.
Analysts had expected the index to rise to 52.5.
Commenting on the report, Rob Dobson, senior economist at survey compiler Markit, said, “September’s disappointing reading will add to the air of caution as to whether the economy is ready for higher interest rates."
Meanwhile, demand for the dollar remained broadly supported by the view that the strengthening economic recovery in the U.S. would prompt the Federal Reserve to hike rates sooner.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report after August’s report fell short of expectations.
Sterling was steady, near two-year lows against the euro, with EUR/GBP dipping 0.05% to 0.7786.
In the euro zone, Markit said the bloc's manufacturing PMI fell to 50.3 last month from 50.5 in August, compared to expectations for the index to remain unchanged.
read more
GBP/USD mixed on soft U.K., U.S. factory reports
The pound traded flat against the dollar on Wednesday after a soft U.K. factory gauge hit the wire, though similarly disappointing data out of the U.S. watered down the greenback as well.
In U.S. trading on Wednesday, GBP/USD was up 0.01% at 1.6215, up from a session low of 1.6162 and off a high of 1.6252.
Cable was likely to find support at 1.6160, the low from Sept. 16, and resistance at 1.6288, Tuesday's high.
Markit research group reported earlier that its U.K. manufacturing purchasing managers' index fell to 51.6 in September from a 52.2 in August, whose figure was downwardly revised from a previously estimated reading of 52.5.
Analysts had expected the index to rise to 52.5, and the disappointing figure softened demand for sterling.
"September’s disappointing reading will add to the air of caution as to whether the economy is ready for higher interest rates," said Rob Dobson, senior economist at survey compiler Markit.
Meanwhile across the Atlantic, the Institute of Supply Management reported that its manufacturing index fell to 56.6 in September from 59.0 in August.
Economists had expected the index to decline less and come in at 58.5, which softened the dollar.
The employment sub-index slowed to 54.6 from 58.1 in the previous month, while the new orders sub-index fell to 60.0 from 66.7.
At the same time, separate data revealed that U.S. construction spending fell 0.8% in August to an annual rate of $960.96 billion. Analysts were expecting a decline of only 0.5%.
Supporting the dollar, however, was an upbeat report of the U.S. private-sector labor market.
Payrolls processor ADP reported that the U.S. private sector added 213,000 jobs last month, just ahead of expectations for jobs growth of 210,000. The economy created 202,000 jobs in August.
The report came ahead of Friday’s government nonfarm payrolls report, which includes both public and private sector employment.
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.10% at 0.7782, and down against the yen, with GBP/JPY down 0.31% at 177.21.
On Thursday, the U.K. is to publish data on construction activity.
The U.S. is to publish the weekly report on initial jobless claims as well as data on factory orders.
read more