British Pound Climbs To 5-day High Against Dollar And Yen
During early deals on Wednesday, the British pound climbed to a 5-day high against its U.S. and Japanese counterparts on the back of strong equities, with underlying caution ahead of the U.S. Federal Reserve’s rate decision and statement. The pound also edged higher against the European currency and the Swiss franc.
At 4:02 am ET, U.K.’s FTSE 100 index was 37.53 points up or 0.74% at 5,074.29.
UK’s permanent and temporary staff appointments increased sharply in October, the Report on Jobs revealed today. Growth of permanent staff appointments accelerated to a two-year high in October.
The Report on Jobs is a monthly publication produced by Markit Economics on behalf of the Recruitment & Employment Confederation and KPMG.
Demand for permanent staff rose for the first time in seventeen months, while demand for temporary staff climbed after reporting a slight gain in September. Meanwhile, permanent salaries fell marginally, which was the slowest pace in the thirteen-month period of decrease. Temporary staff pay also registered a weaker drop in October.
According to survey results released earlier today by the British Retail Consortium, the inflation rate in Great Britain was zero in October.
The rate was largely unchanged from the September rate of deflation of 0.1 percent, BRC said.
The Shop Price Index showed an inflation rate of 2.5 percent for food items, the second straight month at that rate.
Against the US dollar, the British pound edged higher during early deals on Wednesday. At 3:15 am ET, the pound-dollar pair reached a 5-day high of 1.6497, compared to 1.6437 hit late New York Tuesday. The next upside target level for the pair is seen around 1.655.
The sterling that closed Tuesday’s North American session at 0.8962 against the European currency hit a high of 0.8943 at 2:50 am ET Wednesday. The euro-pound pair is currently trading at 0.8954 with 0.889 seen as the next target level.
Against the Japanese yen, the British currency traded higher during Wednesday’s early deals. At 3:30 am ET, the pound-yen pair climbed to a 5-day high of 149.66, compared to Tuesday’s closing value of 148.51. If the pair gains further, 151.22 is seen as the next target level.
The monetary base in Japan was up 4.4 percent on year in October, the Bank of Japan said today, coming in at 92.86 trillion yen. That follows the 4.5 percent annual increase in September.
U.K.’s sterling that closed Tuesday’s New York deals at 1.6866 against the Swiss franc rose to 1.6914 at 2:50 am ET Wednesday. On the upside, 1.695 is seen as the next target level for the pair.
At 4:30 am ET, the services Purchasing Manager Index from UK is due for release.
The Eurostat is slated to issue Eurozone producer prices for September at 5:00 am ET. Producer prices are forecast to fall 0.4% month-on-month in September, after rising 0.4% in August. On a yearly basis, producer prices are set to decline 7.7%.
Across the Atlantic, the ADP National Employment report, which sheds light on non-farm private employment, is scheduled to be released at 8:15 AM ET. The private sector is expected to have lost 190,000 jobs in October.
The ISM is scheduled to release the results of its non-manufacturing survey at 10 AM. The non-manufacturing index is likely to show a reading of 51.5 for October.
The Federal Reserve Open Market Committee is scheduled to make an announcement regarding its near-term direction of monetary policy at 2:15 PM ET today following the end of its 2-day monetary policy committee meeting.
