By TraderVox.com
Tradervox.com (Dublin) – The sterling pound advanced against the euro for the second week as improvements in the UK economy dampened speculation of additional stimulus. The sterling pound remained low against the dollar, as reports last week showed that the US employers added more jobs last month than the market was expecting. The sterling’s strength against the euro came just days before the Bank of England Monetary Policy Committee meeting on November 7-8. The MPC will discuss whether to extend the asset-purchases program. It refrained from extending it in their last meeting last month.
According to Childe-Freeman, who heads foreign exchange strategy in London at Bank of Montreal, the recent news from UK has been supportive of the pound. He noted that the UK construction has particularly improved. He projected that the sterling will continue to rise against the pound as far the UK economy keeps providing positive news. He also suggested that there is decreased expectation of QE from the MPC when they meet this week. The UK currency has been supported by the expansion reported in the construction sector.
According to a report last week, the gauge of construction activity expanded to 50.9 in October, from the 49.5 registered in September. This was better than the median market estimate of 49. The UK economy came out of a recession in the third quarter when the GDP expanded by one percent. The positive reports from the UK were supported by the Confederation of British Industry report which forecast a growth of 1.4 percent in 2013. Following these reports, most economists and analysts have changed their previous bets of Bank of England adding stimulus.
The pound advanced against the euro by 0.2 percent to 799.91 pence at the start of trading in London from last week’s close of 80.12 pence per euro. It reached its strongest level since October 2 of 79.86 pence. The UK currency was little changed against the dollar, exchanging at $1.6006 down from last week’s close of $1.6031.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
