POUND FUNDAMENTAL : British Pound Rallies Sharply after Strong Jobs Data, Yields Unexpectedly Steady Through Wednesday’s trading session, the sterling took the top spot amongst the majors. Particularly remarkable amongst the pound crosses was the GBPUSD’s surge above 1.5750 to trade at seven-month highs. The catalyst for this breakout move was key event risk that not only sparked short-term speculators’ interests but would also tap into the more fundamental discussion of the Bank of England’s pace on policy. The August jobless claims surprised the consensus with a 32,600-net decline and a further downward revision to the previous month’s reading. Together, the July-August drop in unemployment claims was the biggest two-month slide since 1997. This is yet another point for rate forecasts to doubt the BoE’s ability to avoid cuts before 2016. We’ll see if they confirm this in upcoming MPC testimony in Parliament.
Posted on: Thu, 12 Sep 2013 06:57:49 +0000
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