European Session – Sterling jumps after UK GDP only to fall again
August 23, 2013 12:11 pm
The euro and the pound were the main focus in the European session on Friday, with both currencies swinging back and forth throughout the session.
Sterling gained some 60 pips to a session high on the release of the confirmation of second quarter U.K. GDP second reading which came in at a positive 0.7 percent versus a previous estimate of 0.6 percent.
GBPUSD jumped from a pre-data low of $1.5606 to a session high of $1.5636.
The gains were short-lived and cable dropped back down to $1.5546.
This drop against the dollar also led to a drop versus the euro. EURGBP had a strong rally to 85.88 pence since the post-U.K. GDP dip to 85.39 pence.
Euro is being buoyed today by positive comments from European Central Bank policymaker Ewald Nowotny who said he did not see much reason for the ECB to cut interest rates.
EURUSD moved up to a session high of $1.3370 from the session open of $1.3340.
Euro also gained against the yen, with EURJPY hitting a fresh one-month high of 132.35 yen in European session trading today.
The broadly weaker yen also helped the dollar advance against it, with USDJPY hitting a high of 99.12 yen in early session trading, the highest since August 2.
The diverging central bank monetary policies of the Fed and the BOJ are widening UST and JGB bond yield spreads, making the USD more favourable currency versus JPY.
The euro and the pound were the main focus in the European session on Friday, with both currencies swinging back and forth throughout the session.
Sterling gained some 60 pips to a session high on the release of the confirmation of second quarter U.K. GDP second reading which came in at a positive 0.7 percent versus a previous estimate of 0.6 percent.
GBPUSD jumped from a pre-data low of $1.5606 to a session high of $1.5636.
The gains were short-lived and cable dropped back down to $1.5546.
This drop against the dollar also led to a drop versus the euro. EURGBP had a strong rally to 85.88 pence since the post-U.K. GDP dip to 85.39 pence.
Euro is being buoyed today by positive comments from European Central Bank policymaker Ewald Nowotny who said he did not see much reason for the ECB to cut interest rates.
EURUSD moved up to a session high of $1.3370 from the session open of $1.3340.
Euro also gained against the yen, with EURJPY hitting a fresh one-month high of 132.35 yen in European session trading today.
The broadly weaker yen also helped the dollar advance against it, with USDJPY hitting a high of 99.12 yen in early session trading, the highest since August 2.
The diverging central bank monetary policies of the Fed and the BOJ are widening UST and JGB bond yield spreads, making the USD more favourable currency versus JPY.
Related Posts: