Pound Higher As U.K. Industrial Output Beats Forecasts, European Shares Rise

01:49, 7th October 2015

(RTTNews) - The pound firmed against the other major currencies in European deals on Wednesday, as European shares advanced, and U.K. industrial output rebounded at a faster than expected pace in August.

Data from the Office for National Statistics showed that industrial output grew 1 percent from July, reversing a 0.3 percent drop in the prior month. Economists had forecast a 0.3 percent rise for August.

At the same time, manufacturing advanced 0.5 percent, partially offsetting a 0.7 percent fall in July. It was faster than the expected 0.3 percent increase.

European markets are trading higher, tracking gains from Asia, following a sharp rally in oil prices. The oil was supported after International Energy Agency slashed down its forecast for U.S. crude output in 2015, while the American Petroleum Institute's data showed declining crude stockpiles last week.

In the Asian session, the pound rose against the dollar and the euro, but declined against the franc and the yen.

In European trading, the pound appreciated to 1.5311 against the dollar, its strongest since September 23, and was up by 0.58 percent from Tuesday's closing value of 1.5223. If the pound-dollar pair extends rise, it is likely to find resistance around the 1.545 level.

The pound spiked up to near a 2-week high of 183.78 against the yen and a 9-day high of 0.7340 against the euro, off its early lows of 182.50 and 0.7404, respectively. On the upside, the pound may challenge resistance around 185.00 against the yen and 0.725 against the euro. The pound ended Tuesday's trading at 182.98 against the yen and 0.7399 against the euro.

The pound advanced to a 2-day high of 1.4812 against the Swiss franc, off early 5-day low of 1.4712. The pair was valued at 1.4713 when it ended Tuesday's trading. The pound is seen finding resistance near the 1.49 zone.

Looking ahead, Energy Information Administration's crude inventory data for the week ended October 2 and U.S. consumer credit for August are to be released in the New York session.