Pound Strengthens After U.K. Economic Growth Exceeds Forecasts
25 Ottobre 2017 - 8:05AM
RTTF2
The pound advanced against its major opponents in early European
deals on Wednesday, after a data showed that UK economy expanded
more than expected in the third quarter.
Figures from the Office for National Statistics showed that
gross domestic product grew 0.4 percent sequentially in three
months ended September. The statistical office revised its second
quarter growth to 0.4 percent from 0.3 percent.
GDP was forecast to rise 0.3 percent in the third quarter.
On a yearly basis, the economy expanded 1.5 percent, in line
with expectations.
Another report from ONS showed that the index of services
climbed 0.2 percent in August from July. In three months to August,
services output rose 0.4 percent from previous quarter.
Speaking before the parliamentary committee, Brexit minister
David Davis said he expects the transition deal with the EU to be
agreed early in 2018.
Davis also revealed that a new trade deal is likely to be agreed
before Article 50 talks conclude in March 2019.
The pound held steady against its major rivals in the Asian
session, with the exception of the franc.
The pound climbed to 0.8921 against the euro, from a low of
0.8973 hit at 3:00 am ET. If the pound advances further, 0.88 is
possibly seen as its next resistance level.
Survey results from Ifo Institute showed that Germany's business
confidence improved in October.
The business confidence index rose unexpectedly to 116.7 from
revised 115.3 in the previous month. The expected reading was
115.0.
Having fallen to a 5-day low of 1.3110 against the greenback at
3:00 am ET, the pound advanced to 1.3186 following the data. The
pound is seen finding resistance around the 1.33 region.
The pound advanced to 1.3084 against the franc, its strongest
since September 27. This may be compared to a low of 1.2985 hit at
3:15 am ET. On the upside, 1.32 is likely seen as the next
resistance for the pound.
Data from the UBS investment bank showed that the Swiss
consumption indicator remained slightly above the long-term average
in September.
The consumption indicator rose to 1.56 points in September from
revised 1.50 in August. The indicator was underpinned by
significantly higher expectations in the retail industry.
The pound strengthened to more than a 3-week high of 150.53
against the yen, off its previous low of 149.28. Continuation of
the pound's uptrend may see it challenging resistance around the
152.00 region.
Looking ahead, U.S. durable orders and new home sales for
September and Federal housing finance agency's house price index
for August are due in the New York session.
At 10:00 am ET, the Bank of Canada announces its decision on
interest rates. Economists expect the benchmark rate to remain at
1.00 percent.
The BoC Governor Stephen Poloz and Deputy Governor Carolyn
Wilkins will host a press conference in Ottawa at 11:15 am ET.
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