Forex - GBP/USD higher as market sentiment improves

Published 12/14/2012, 11:39 AM
Updated 12/14/2012, 11:40 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound was higher against the U.S. dollar on Friday, as market sentiment was boosted by upbeat U.S. economic reports, while investors continued to eye ongoing U.S. budget talks.

GBP/USD hit 1.6146 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6143, adding 0.19%.

Cable was likely to find support at 1.6086, Thursday's low and resistance at 1.6202, the high og October 4.

In a preliminary report, Markit research group said that the U.S. manufacturing purchasing managers' index climbed to 54.2 in December from a reading of 52.80 the previous month, beating expectations for a decline to 52.6.

A separate report showed that U.S. industrial production rose far more-than-expected in November, climbing by 1.1% after a 0.7% fall the previous month. Analysts had expected industrial production to rise 0.3% in November.

The data came after the U.S. Bureau of Labor Statistics said consumer price inflation fell 0.3% in November, more than the expected 0.2% decline, after a 0.1% rise the previous month.

Core consumer price inflation, which excludes food and energy, rose 0.1% last month, disappointing expectations for a 0.2% rise, following a 0.2% increase in October.

Sentiment also remained supported after euro zone finance ministers agreed on Thursday to immediately disburse EUR34.4 billion in bailout funds for Greece. The announcement came one day after a long-awaited deal on rules for supervising euro zone banks was concluded.

Meanwhile, investors remained focused on negotiations to avoid the U.S. fiscal cliff, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.

Sterling was lower against the euro with EUR/GBP rising 0.26%, to hit 0.8137.

In the euro zone, the manufacturing PMI improved less-than-expected in December, ticking up to 47.3 from a reading of 46.2 the previous month. Analysts had expected the index to improve to 46.6 in December.

The euro zone's services PMI rose to 47.8 this month from 46.7 in November, beating expectations for a rise to 47.0.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.