US Session – Sterling edges up to new 11-month high in quiet Thanksgiving holiday trading
November 28, 2013 7:47 pm
Most major currency pairs were trading in a range in holiday-thinned US markets which were closed for the Thanksgiving holiday on Thursday.
Sterling was the only currency that moved to break its previous session highs, reaching a new 11-month high of 1.6356. The pound gained 0.3% on the day on news that the Bank of England supports a move to make changes to the “Funding for Lending Scheme” and to withdraw support for mortgages in the UK.
This scaling back of stimulus for the housing sector was seen by markets as confirmation of the Bank of England’s confidence in the UK economy and so this helped buoy the pound. The news raised expectations that interest rates in the UK will rise before those of other major regions.
The pound also gained against the yen, climbing over 0.4% on the day and reaching a new 5-year high of 167.29 in the US session.
The euro fell 0.15% to 83.23 pence. Earlier the euro reached a 3-week low of 83.13 pence.
The euro however performed better against the dollar and the yen, after being lifted by German CPI data which rose more-than-expected in November. The accelerated pace of inflation may dampen expectations for a rate cut by the European Central Bank.
The euro was propelled to a high of 1.3617 after the German data and consequently consolidated gains against the dollar around the key 1.3600 level, up 0.16% on the day.
The euro gained around 0.3% against the yen to 139.03, after hitting a new 4-year high of 139.17.
The dollar hit a six-month high of 102.36 yen as many market participants expect the yield differential between US Treasuries and Japanese bonds (JGBs) to widen due to the diverging monetary policies of the Federal Reserve and the Bank of Japan.
Most major currency pairs were trading in a range in holiday-thinned US markets which were closed for the Thanksgiving holiday on Thursday.
Sterling was the only currency that moved to break its previous session highs, reaching a new 11-month high of 1.6356. The pound gained 0.3% on the day on news that the Bank of England supports a move to make changes to the “Funding for Lending Scheme” and to withdraw support for mortgages in the UK.
This scaling back of stimulus for the housing sector was seen by markets as confirmation of the Bank of England’s confidence in the UK economy and so this helped buoy the pound. The news raised expectations that interest rates in the UK will rise before those of other major regions.
The pound also gained against the yen, climbing over 0.4% on the day and reaching a new 5-year high of 167.29 in the US session.
The euro fell 0.15% to 83.23 pence. Earlier the euro reached a 3-week low of 83.13 pence.
The euro however performed better against the dollar and the yen, after being lifted by German CPI data which rose more-than-expected in November. The accelerated pace of inflation may dampen expectations for a rate cut by the European Central Bank.
The euro was propelled to a high of 1.3617 after the German data and consequently consolidated gains against the dollar around the key 1.3600 level, up 0.16% on the day.
The euro gained around 0.3% against the yen to 139.03, after hitting a new 4-year high of 139.17.
The dollar hit a six-month high of 102.36 yen as many market participants expect the yield differential between US Treasuries and Japanese bonds (JGBs) to widen due to the diverging monetary policies of the Federal Reserve and the Bank of Japan.
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