Sterling heads for best two-week run since November
LONDON, July 12 (Reuters) -The pound coursed towards its best two-week performance against the dollar in eight months on Friday, after data pointed to an improvement in UK growth, while the U.S. economy shows signs of fatigue.
Action in the foreign exchange market in the last 24 hours has been dominated by the yen, which rose by the most since early May on Thursday after the Bank of Japan likely intervened to prop it up, just as the dollar weakened following a softer U.S. inflation report.
The pound dropped by over 1% against the yen on Thursday, as the Japanese currency strengthened broadly. It was last up 0.3% at 205.65 yen GBPJPY=R, near its highest since early 2008.
Sterling GBP=D3 has gained 2.4% against the dollar in the last two weeks, its biggest two-weekly rise since November last year. It was last up 0.3% at $1.2949, making it one of the best performing major currencies of the day.
Data on Thursday showed the UK economy grew more quickly than expected in May, which prompted traders to chop back their bets on an August rate cut from the Bank of England.
BoE Chief Economist Huw Pill gave the pound an extra boost this week by saying services inflation and wage growth showed "uncomfortable strength" despite headline inflation falling to the BoE's 2% target in May, and it was unlikely that June inflation figures due next week would change the big picture.
"Our August BoE rate cut call, already very close, is in doubt, with the market pricing 50%," Bank of America strategists said in a note.
The futures market attaches a 52% chance of an August cut from the BoE and an 88% chance of a September one.
A week ago, those chances were at 61% and 92%. 0#BOEWATCH
"Interest rate differentials are a key fundamental driver of currencies, and right now they are supportive of the pound. The real interest rate in the UK is 3.25%, this compares with 2.5% for the U.S.," XTB research director Kathleen Brooks said.
"The larger real interest rate in the UK versus the U.S. is driving the pound right now, and it may only get larger."
Graphic: World FX rates in 2023 http://tmsnrt.rs/2egbfVh
Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
Reporting by Amanda Cooper; Editing by Barbara Lewis
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
