Pound Mixed Following BoE Minutes, U.K. Jobless Rate
December 17 2014 - 5:15AM
RTTF2
The British pound showed mixed trading against the other major
currencies in the early European session on Wednesday following the
release of the Bank of England's minutes of its monetary policy
meeting and the nation's unemployment report for the three months
to October.
Bank of England policymakers decided to leave its key rate at a
historic low of 0.50 percent in a split vote for the fifth straight
time at the meeting held on December 3 and 4. The Monetary Policy
Committee voted 7-2 to retain its key rate at 0.50 percent. Ian
McCafferty and Martin Weale sought a 25 basis-point hike for the
fifth straight meeting.
Regarding the asset purchase programme, the Monetary Policy
Committee unanimously decided to maintain it at GBP 375
billion.
Data from the Office for National Statistics showed that U.K.
unemployment rate fell less than expected in the August to October
period. Compared with a year earlier, the number of unemployed
people fell by 455,000.
The claimant count rate fell to 2.7 percent in November as
expected, from 2.8 percent in October. The number of people
claiming jobseeker's allowance decreased by 26,900 from October,
while economists expected a decline of 20,000.
Traders focus on the Federal Reserve's final interest rate
announcement of 2014, due later in the day.
In the Asian trading, the pound held steady against most major
rivals.
In the European trading, the pound retreated to 1.5106 the Swiss
franc, from an early 2-day high of 1.5155 and held steady
thereafter.
Against the euro, the pound rose to a 2-day high of 0.7922 from
an early low of 0.7953. If the pound extends its uptrend, it is
likely to find resistance around the 0.78 area.
Pulling away from early highs of 1.5752 against the U.S. dollar
and 184.68 against the yen, the pound edged down to 1.5676 and
183.63, respectively, and held steady thereafter.
Looking ahead, U.S. CPI for November and current account balance
for third quarter are due to be released in the New York
session.
At 9:00 am ET, Swiss National Bank is set to release its latest
quarterly monetary policy report on business cycle trends.
At 2:00 pm ET, the Federal Reserve will announce its decision on
monetary policy. The Fed is expected to hold rates at 0.25 percent.
Subsequently, Fed Chair Janet Yellen holds a press conference
following FOMC meeting on interest rate policy.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Apr 2023 to Apr 2024