European Session – Sterling extends gains after more upbeat UK data
November 6, 2013 1:20 pm
After climbing back above the key 1.35 handle during the Asian session, the euro consolidated gains around this level in the European session, ending at 1.3519, with a 0.15% gain. There was a series of Eurozone economic data released today but it was mainly Germany’s higher-than-expected industrial orders which had the most impact on the euro, boosting it to a session high of 1.3531.
German industrial orders increased by 3.3% in September, which by far greater than the 0.5% that was forecast. Other news releases were on Eurozone retail sales, which fell 0.6% month-on-month. Final Services PMI for the Eurozone remained in expansionary territory and rose to 51.6, while the Composite PMI also rose, printing a reading of 51.9.
The euro remains vulnerable ahead of the European Central Bank policy decision tomorrow, which could bring renewed weakness in the currency if the central bank cuts rates or signals it will do so by December.
Another batch of upbeat UK economic data lifted the British pound today. UK Industrial output data was better-than-expected and UK housing prices, as per Halifax, rose for the ninth consecutive month in October.
The pound extended yesterday’s gains to a high of 1.6116 against the dollar, and ended the session at 1.6091 with a gain of 0.06%. Against the euro, sterling gained 0.07% to end at 0.8400.
The US dollar was a little softer as a result of the rise in the euro and pound, and it remained flat against the yen to end at 98.62. US GDP and jobless claims tomorrow as well as Friday’s nonfarm payrolls will be a big driver for the dollar.
After climbing back above the key 1.35 handle during the Asian session, the euro consolidated gains around this level in the European session, ending at 1.3519, with a 0.15% gain. There was a series of Eurozone economic data released today but it was mainly Germany’s higher-than-expected industrial orders which had the most impact on the euro, boosting it to a session high of 1.3531.
German industrial orders increased by 3.3% in September, which by far greater than the 0.5% that was forecast. Other news releases were on Eurozone retail sales, which fell 0.6% month-on-month. Final Services PMI for the Eurozone remained in expansionary territory and rose to 51.6, while the Composite PMI also rose, printing a reading of 51.9.
The euro remains vulnerable ahead of the European Central Bank policy decision tomorrow, which could bring renewed weakness in the currency if the central bank cuts rates or signals it will do so by December.
Another batch of upbeat UK economic data lifted the British pound today. UK Industrial output data was better-than-expected and UK housing prices, as per Halifax, rose for the ninth consecutive month in October.
The pound extended yesterday’s gains to a high of 1.6116 against the dollar, and ended the session at 1.6091 with a gain of 0.06%. Against the euro, sterling gained 0.07% to end at 0.8400.
The US dollar was a little softer as a result of the rise in the euro and pound, and it remained flat against the yen to end at 98.62. US GDP and jobless claims tomorrow as well as Friday’s nonfarm payrolls will be a big driver for the dollar.
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