Pound In Positive Territory As Chancellor Ups 2016 GDP Outlook
November 25 2015 - 3:36AM
RTTF2
The pound was higher against its major rivals in early New York
deals on Wednesday, after U.K. Chancellor of the Exchequer George
Osborne lifted economic growth forecast for next year, while saying
that Britain has seen the fastest growth among the G-7 nations
since 2010.
Speaking to lawmakers in the House of Commons, Osborne argued
that the economic growth had not been driven by an irresponsible
banking boom, like in the last decade. "We're determined that this
will be an economic recovery for all, felt in all parts of our
nation," he claimed.
The Office for Budget Responsibility left its economic growth
forecast unchanged at 2.4 percent for 2015. It raised its outlook
for 2016 to 2.4 percent, from its July predictions of 2.3 percent
growth.
However, Britain's budget deficit forecast has been widened to
3.9 percent of gross domestic product this year from 3.7 percent
seen in July.
In other economic news, U.K. mortgage approvals increased in
October and gross mortgage lending reached a seven year high,
according to a report from the British Bankers' Association.
The number of mortgages approved in October rose to 45,437 from
44,825 in September. It was also below the expected level of
44,500.
The currency has been higher against most major rivals in
European deals, amid a rise in European stocks.
Reversing from an early low of 1.5056 against the greenback, the
pound rebounded to 1.5124. On the upside, the pound is likely to
find resistance around the 1.52 mark.
Data from the Commerce Department showed that new orders for
U.S. manufactured durable goods increased by much more than
expected in the month of October.
The durable goods orders jumped by 3.0 percent in October after
falling by a revised 0.8 percent in September.
The pound, having declined to 1.5308 against the Swiss franc at
2:45 am ET, edged up to 1.5420. The next resistance for the pound
may possibly be found around the 1.55 level.
Figures from the UBS bank showed that Switzerland's consumption
increased slightly in October, driven by better retail trade
prospects along with brighter consumer confidence.
The consumption indicator rose to 1.60 in October from 1.56 in
the previous month, which was revised down from 1.65.
The pound reached as high as 0.7016 against the euro, following
a decline to 0.7080 at 2:55 am ET. The pound is seen finding
resistance near the 0.69 zone.
Financial market risks stemming from emerging markets,
especially China, are rising, while the limited direct exposure of
the euro area banks to these markets reduces the impact, the
European Central Bank said in a report.
"Occasional bouts of financial market volatility suggest that
vulnerabilities stemming from emerging markets are increasing. Of
particular concern is the outlook for China, given its growing role
in the world economy," the ECB said in its latest bi-annual
Financial Stability Review.
The pound climbed to 185.24 against its Japanese counterpart, up
from 184.73 hit late New York Tuesday. If the pound extends rise,
it may locate resistance around the 186.5 area.
Bank of Japan policymaker Sayuri Shirai said core inflation is
likely to rise to the 2 percent target by around spring 2017, a
delay of about a quarter from the official projection.
Core inflation will accelerate and reach about 1.7-1.8 percent,
or rise closer to around 2 percent from the January to March 2017
to the April-June quarter, Shirai said.
Looking ahead, U.S. new home sales data for October, University
of Michigan's final consumer sentiment index for November and U.S.
crude oil inventories data are set to be published shortly.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Apr 2024 to May 2024
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From May 2023 to May 2024