FX round-up: Perky pound takes cheeky Friday stroll higher on dollar

Digital Look Sharecast | 19 May, 2017 18:49 | | |

Money coins pound

Britain's perky pound went for a cheeky Friday stroll over the psychologically important $1.30 marker thanks to the lingering political storm surround US President Donald Trump.

At about 17:00, sterling was up 0.6% to $1.3016, and was down 0.21% to €1.1633. The dollar-spot index was down 0.62% to $97.269.

"The GBP/USD was boosted by the impressive UK Confederation of British Industry industrial order expectations report," said David Madden, market analyst at CMC Markets UK.

The CBI report came in with a reading of 9 for May, a clear rise from April's 4 and well above forecasts for a print of 4. This was after Thursday's better than expected UK retail data.

FXTM's Lukman Otunuga said that, from a technical standpoint, the cable still remained at risk of trading lower to $1.2775 if bulls failed to secure a solid daily close above $1.3000.

"In an alternative scenario, a daily close above $1.3000 should open a path higher towards $1.3250," said the research analyst.

Sterling was also up on the aussie, loonie, kiwi and yen, but slipped on the rand and euro.

"The EUR/USD also had a positive session today on account of the decline in the US dollar," said Madden.

"Higher than expected producer price index (PPI) numbers from Germany nudged the single currency higher but today’s move has more to do with the fall in the US dollar," he noted.

For the greenback, Friday turned out to be a day of downs on major pairs. It lost ground on the euro, aussie, loonie, kiwi, rand and yen. It and Wall St were recovering from a sell-off earlier in the week sparked by concerns Trump could be impeached.

"The lingering political storm in the US surrounding President Trump continues to heap some pressure on the dollar," said Chris Saint, senior analyst at HL Currency Service.

This cast doubts over whether he could deliver the pro-growth economic reforms that were supporting expectations for the Fed to carry on lifting rates gradually this year, he said.

Otunuga said the Friday selling pressure on the dollar highlighted how the focus remained on the political instability in Washington and growing uncertainty over the future of Trump’s administration.

"With those who were heavily optimistic over Trump's proposed fiscal policies now having second thoughts amidst this uncertainty, the dollar could become a seller’s best friend."

More news

16 Oct US close: Stocks finish higher on impressive factory data

Stocks started the week higher on Monday, on the back of a stronger-than-expected reading on the Empire State factory index and amid somewhat hawkish Fedpseak.

16 Oct Europe close: Political standoff weighs on Spanish stocks

Stocks on the Continent were little changed at the start of the week, save in Spain where the ongoing political standoff between the central government in Madrid and regional officials in Catalonia weighed on sentiment.

16 Oct Mercedes-Benz to recall almost 400,000 vehicles over faulty airbags

German multinational automotive group Daimler, the parent company of Mercedes-Benz, announced on Monday that they would recall nearly 400,000 vehicles that were potentially fitted with a faulty airbag.

16 Oct London close: Stocks slip lower despite gains for miners

London stocks slipped on Monday as miners rallied on the back of Chinese inflation data, but Convatec slid after a profit warning.

16 Oct Airbus chief willing to step down if 'no longer part of the solution'

Tom Enders, chief executive of French aeronautical giant Airbus, said on Sunday that he would be willing to step down from the role he had held since 2012 in an effort to safely guide the firm through ongoing corruption investigations.

16 Oct US open: Stocks push higher following upbeat factory data

Stocks have started the week higher on the back of a stronger-than-expected reading on the Empire State factory index and amid somewhat hawkish Fedpseak.

16 Oct Telit confirms talks to offload automotive division

AIM-quoted machine-to-machine (M2M) communications provider Telit Communications confirmed it was in "very early stage" talks to sell its automotive division.

16 Oct Tuesday preview: UK inflation could top 3pc; results from Pearson, Merlin, Asos

UK and eurozone inflation will be the big focus of the day, while the new reporting season kicks in with Asos, Bellway, London Stocks Exchange, Merlin Entertainment, Pearson and Virgin Money.

16 Oct Stellar Diamonds agrees sale price for Guinea assets

West Africa-focussed diamond development company Stellar Diamonds announced on Monday that it has signed conditional share purchase agreements with Gold Knight - a wholly-owned subsidiary company of BDG Capital - in relation to the proposed sale of Stellar's assets in the Republic of Guinea, as it had previously announced on 5 June and 14 August.

16 Oct Genedrive signs distribution agreement with Sysmex

Near-patient molecular diagnostics company Genedrive announced on Monday that it has signed a distribution agreement with Sysmex Europe, a subsidiary of Sysmex Corporation, for the Genedrive HCV ID Kit and Genedrive platform in the Europe-Middle East-Africa region, with an initial focus on Africa.