Sterling bounces off one-year high versus dollar

Sterling bounces off one-year high versus dollar

Sterling slumped in American trade against the dollar after marking the highest since September 13, following a spate of data from Britain and the US. 

As of 05:16 GMT, GBP/USD fell 0.50% to 1.3217 from the opening of 1.3283, with an intraday low at 1.3205, and a one-year high at 1.3329. 

Earlier UK data showed the unemployment rate for the three months ending July fell to a 1975 low at 4.3% from 4.4%, while average wages rose 2.1%, missing forecasts of 2.3%, and finally jobless claims fell by 2.8 thousand, while analysts expected a 0.8K increase. 

Bank of England is scheduled to convene tomorrow for a periodic policy meeting, where it is expected to maintain interest rates at their record low of 0.25%, and the assets purchase program at 435 billion pound, while from the US, while noting that strong recent labor data bolsters expectations of policy tightening in the next months. 

Otherwise, earlier US data showed producer prices rose less than expected in August, while core prices widened also below forecasts, as yearly readings for both accelerates below expectations as well. 

August inflation data was released earlier this week with investors now studying their possible impact on the Federal Reserve's policy decisions, while noting that chances of a Fed rate hike for a third time this year have fallen considerably in recent weeks. 

 

Source : http://m.economies.com

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