British Pound Drops Against Majors
In early European deals on Friday, the British pound weakened against other major currencies despite a rise in regional stocks. The pound fell to a 1- 1/2 -month low against the euro and a 3-day low against the yen.
Around 6:13 am ET, U.K.’s benchmark FTSE 100 index gained 46.15 points or 0.9% to 5,256.83.
The British pound slipped against the currencies of U.S. and Switzerland in early European deals on Friday. As of now, the pound is worth 1.5370 against the dollar and 1.6020 against the franc, down from yesterday’s close of 1.5460 and 1.6105, respectively. If the U.K. currency falls further, it may likely target 1.599 against the franc and 1.496 against the dollar.
The pound fell to a 3-day low of 134.01 against the yen at 6:05 am ET Friday. The pound-yen pair that closed yesterday’s trading at 135.15 is now worth 134.09. On the downside, 132.5 is seen as the next target level for the pound.
Japan’s economy is likely to recover at a moderate pace, driven by improvements in global economic conditions, the country’s central bank said today.
In its latest monthly report reviewing the economy, the Bank of Japan said exports and industrial production have been picking up, although it expects the pace of increase to moderate gradually.
At 5:55 am ET Friday, the pound slumped to a 1- 1/2 -month low of 0.8449 against the euro. The next downside target level for the pound is seen at 0.845. The euro-pound pair is now worth 0.8440, compared to 0.8375 hit late New York Thursday.
The eurozone’s trade balance with the rest of the world slipped into deficit in May from a small surplus in April, official figures showed. The unadjusted deficit was EUR 3.4 billion, compared with a surplus of EUR 0.3 billion in April. Economists had predicted a much smaller deficit of EUR 0.5 billion. In May last year, a surplus of EUR 2.2 billion was registered.
Looking ahead, the U.S. CPI for June, Treasury Department’s report on the flows of financial instruments into and out of the U.S. for April and the preliminary report of the Reuters/University of Michigan’s consumer sentiment survey for July are slated for release in the upcoming New York session.
