Daily market report Pound Approaches Strongest Level Since January Before BOE Report - Dollar Gains to 6-Month High on December Taper Bet - Euro poised as Merkel plans nearing agreement The pound advanced, approaching the highest level since January versus the dollar, before the Bank of England releases its semi-annual Financial Stability Report. Sterling rose for a second day against the euro. Governor Mark Carney will hold a press conference at 10:30 a.m. in London. The pound strengthened yesterday as a government report confirmed Britain’s economic growth accelerated in the third quarter, boosting demand for U.K. assets. The pound rose 0.1 percent to $1.6305 at 7:24 a.m. London time after climbing to $1.6331 yesterday, the highest since Jan. 2. The U.K. currency gained 0.2 percent to 83.25 pence per euro after appreciating to 83.01 on Nov. 7, the strongest level since Jan. 17. The pound gained 7.3 percent in the past six months, the best performer of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes amid speculation a strengthening economy will prompt the Bank of England to increase borrowing costs. The euro appreciated 4.2 percent, while the dollar fell 1.9 percent. The dollar rose to a six-month high against the yen as an unexpected drop in U.S. jobless claims and a rise in leading economic indicators added to speculation the Federal Reserve may start reducing stimulus next month The dollar gained 0.9 percent to 102.16 yen at 5 p.m. in New York and touched 102.19, the strongest level since May 29. It slipped 0.1 percent to $1.3579 against the common currency, having dropped as much as 0.3 percent earlier. The euro advanced 0.9 percent to 138.73 yen after touching 138.79, the highest since June 2009 The dollar rose for the fourth time in five days against the yen as jobless claims in the week ended Nov. 23 declined 10,000 to 316,000, the Labor Department said today in Washington. The median forecast of 44 economists surveyed by Bloomberg called for an increase to 330,000. Minutes of the Fed’s Oct. 29-30 meeting showed policy makers “generally expected” improvement in employment data that would “warrant trimming the pace of purchases in coming months.” Chairman Ben S. Bernanke said last week the central bank will probably hold down its target interest rate long after ending $85 billion in monthly bond purchases. The Fed will pare its buying to $70 billion, from the current pace of $85 billion, at its March 18-19 meeting, according to the median of 32 economist estimates in a Bloomberg survey this month. The next gathering is Dec. 17-18. The euro strengthened to a four-year high against the yen as German lawmakers reached a coalition accord on wages and spending increases without raising taxes, spurring demand for the region’s assets. Merkel clinched the coalition agreement with the Social Democratic Party that calls for a national minimum wage and pledges to increase spending on pensions and infrastructure. The accord reached shortly before 5 a.m. in Berlin after 17 hours of negotiations sets Merkel on track for a third term leading the nation until 2017. The agreement must still be passed by the entire SPD, which plans a referendum among its about 470,000 members. Have a good day! #forex #100%_bonus #UniTrader #BMFN #trading_platform #money_managing #forex_contest
Posted on: Thu, 28 Nov 2013 10:14:14 +0000
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