2013-03-15 12:55 European Session – Sterling extends gains after comments by BOE’s King
March 15, 2013 12:55 pm
Sterling was the biggest mover in Friday’s European Session, extending gains for the second day after being boosted by comments from the Bank of England governor. Mervyn King said that MPC policy makers aren’t trying to weaken the currency and he believes the decline had gone far enough.
Recovery is finally “in sight” for Britain’s beleaguered economy, commented the BOE governor.
The pound rose 0.5 percent to $1.5167 in mid-London session trading, the highest since March 5. Earlier this week the pound fell to a 2-1/2 year low of $1.4830 on growing speculation of more quantitative easing by the BOE.
Euro gained 0.3 percent in the session to peak at a high of $1.3068, recovering from Thursday’s three-month low of $1.2910. Euro zone CPI data reported as expected, lending some support to the euro.
Focus is on the EU Summit meeting in Brussels today, with the prospect of EU leaders looking at short-term ways of boosting faltering euro zone economies,and this is helping lift the single currency.
Yen weakened today following approval by the Japanese parliament of Haruhiko Kuroda as the new governor of the Bank of Japan. Kuroda has pledged to adopt more aggressive easing measures, perhaps as soon as its next policy meeting on April 3-4. Such policy measures tend to weaken a currency.
AUDJPY hit a high of 99.95 yen, the highest since August 2008. EURJPY rose 0.4 percent to a high of 125.73 yen. USDJPY hovered between 95.94 and 96.24.
Dollar direction could be influenced by upcoming US economic data on US CPI and Empire State Manufacturing Index.
Sterling was the biggest mover in Friday’s European Session, extending gains for the second day after being boosted by comments from the Bank of England governor. Mervyn King said that MPC policy makers aren’t trying to weaken the currency and he believes the decline had gone far enough.
Recovery is finally “in sight” for Britain’s beleaguered economy, commented the BOE governor.
The pound rose 0.5 percent to $1.5167 in mid-London session trading, the highest since March 5. Earlier this week the pound fell to a 2-1/2 year low of $1.4830 on growing speculation of more quantitative easing by the BOE.
Euro gained 0.3 percent in the session to peak at a high of $1.3068, recovering from Thursday’s three-month low of $1.2910. Euro zone CPI data reported as expected, lending some support to the euro.
Focus is on the EU Summit meeting in Brussels today, with the prospect of EU leaders looking at short-term ways of boosting faltering euro zone economies,and this is helping lift the single currency.
Yen weakened today following approval by the Japanese parliament of Haruhiko Kuroda as the new governor of the Bank of Japan. Kuroda has pledged to adopt more aggressive easing measures, perhaps as soon as its next policy meeting on April 3-4. Such policy measures tend to weaken a currency.
AUDJPY hit a high of 99.95 yen, the highest since August 2008. EURJPY rose 0.4 percent to a high of 125.73 yen. USDJPY hovered between 95.94 and 96.24.
Dollar direction could be influenced by upcoming US economic data on US CPI and Empire State Manufacturing Index.
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