Pound Firms As U.K. GDP Rebounds More Than Estimated
20 Dicembre 2019 - 8:10AM
RTTF2
The pound strengthened against its major opponents in the
European session on Friday, as the UK economy recovered at a
slightly faster than previously estimated pace in the third
quarter.
Data from the Office for National Statistics showed that gross
domestic product grew 0.4 percent sequentially, slightly faster
than the 0.3 percent growth estimated initially and in contrast to
the 0.2 percent decline seen in the second quarter.
On a yearly basis, economic growth was revised up to 1.1 percent
from 1 percent in the third quarter.
Separate data showed that U.K. budget deficit narrowed to GBP
5.6 billion in November from GBP 5.4 billion last year. In the
current financial year-to-date period, the budget deficit was GBP
50.9 billion, which was GBP 5.1 billion more than in the same
period last year.
On the Brexit front, U.K. Prime Minister Boris Johnson opened
the debate on the second reading of the withdrawal agreement
bill.
With a clear majority in parliament, Johnson is likely to win
the vote on the revised Brexit bill.
Meanwhile, Andrew Bailey is set to replace Mark Carney as head
of the Bank of England.
Bailey, is currently deputy governor of BoE and the chief
executive of the Financial Conduct Authority.
The currency has been trading higher against its key
counterparts in the previous session.
The pound advanced to 1.3048 against the dollar, from a low of
1.3006 hit at 5:45 pm ET. The pound is seen finding resistance
around the 1.32 level.
The U.K. currency rose to 0.8521 against the euro, after falling
as low as 0.8552 at 6:00 pm ET. The pound is likely to challenge
resistance around the 0.84 level.
Following a decline to 142.17 at 2:30 am ET, the pound climbed
to 142.66 against the yen. If the pound rises further, it may
locate resistance around the 144.00 level.
The pound gained to 1.2795 versus the franc, reversing from a
low of 1.2715 set at 5:15 pm ET. The next possible resistance for
the pound is seen around the 1.33 level.
Looking ahead, Canada retail sales for October and new housing
price index for November, U.S. GDP data for the third quarter,
personal income and spending data for November and University of
Michigan's final consumer sentiment index for December will be
featured in the New York session.
At 10.00 am ET, European Commission is slated to issue Eurozone
flash consumer confidence survey results for December.
Grafico Cross Sterling vs CHF (FX:GBPCHF)
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