Pound Extends Rise Amid BoE Carney's Testimony
20 Décembre 2017 - 10:53AM
RTTF2
The pound continued to be higher against its major counterparts
in early New York deals on Wednesday, after the Bank of England
Governor Mark Carney said that teaming with the U.K. is in best
interests of EU and global financial systems.
Speaking to the Treasury Select Committee, the BoE chief said
that the European Banks operating in the U.K. would face costly
extra capital requirements, if Brexit talks worsen.
"Our presumption is that we will continue to have supervisory
cooperation with EU after Brexit," he told lawmakers.
An early agreement should be reached on the U.K.'s transition
out of the EU, he added.
The International Monetary Fund welcomed the recent progress in
Brexit negotiations between the UK and EU and cautioned that the
timeframe to accomplish the tasks was ambitious.
Early agreement on a transition period would avoid a cliff edge
exit in March 2019 and reduce the uncertainty facing firms and
households, the IMF staff said concluding the Article IV
Mission.
Survey results from the Confederation of British Industry showed
that UK retail sales sustained its robust growth trend in the
run-up to Christmas and is expected to repeat the same next month,
but underlying conditions remained tough as the squeeze on earnings
continue.
The retail sales balance dropped to +20 in December from +26 in
November. That was less than the +30 balance predicted in the
previous survey, but in line with economists' expectations.
The currency has been trading in a positive territory in the
European session.
The pound climbed to a 2-day high of 1.3419 against the
greenback, from a low of 1.3377 hit at 2:00 am ET. If the pound
extends rise, 1.36 is likely seen as its next resistance level.
The pound spiked up to a 9-day high of 152.01 against the yen,
compared to Tuesday's closing value of 151.08. Further uptrend may
see the pound challenging resistance around the 153.00 region.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's all industry activity increased as expected in
October, after falling in the previous month.
The all industry activity index rose 0.3 percent
month-over-month in October, reversing a 0.5 percent decrease in
September.
The pound that closed Tuesday's trading at 1.3180 against the
franc rose to a 2-day high of 1.3258. On the upside, 1.35 is
possibly seen as the next resistance for the pound.
The pound rose back to 0.8829 against the euro, following a
decline to 0.8856 at 3:30 am ET. The next possible resistance for
the pound is seen around the 0.86 mark.
Data from Destatis showed that Germany's producer price
inflation eased to the lowest level in four months in November.
Producer price inflation slowed to 2.5 percent in November from
2.7 percent in October. This was the lowest since July, when prices
climbed 2.3 percent and also slower than the expected growth of 2.6
percent.
Looking ahead, U.S. existing home sales for November are set for
release shortly.
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