FX round-up: Cable edges higher despite strong US data
By Alexander Bueso
Date: Friday 20 Jan 2017
(ShareCast News) - Cable gained ground on Thursday despite the release of upbeat economic data Stateside and support for a long-term strong dollar policy from Trump´s candidate to head the US Treasury.
The pound ended the day at 1.2330, versus the 1.2268 mark from where it started the day off, amid a sharp rise in longer-term UK bond yields.
Ten-year UK bond yields jumped from 1.34% to 1.41%.
Factory activity in the US mid-Atlantic region accelerated in January, with the Philly Fed´s manufacturing sector gauge rising from 19.7 to 23.6 (consensus: 15.3).
Those figures came alongside another large drop in initial US weekly unemployment claims.
Paradoxically, the European single currency also gained ground even after European Central Bank chief Mario Drgahi struck a dovish note at the press conference following the ECB´s decision.
Dollar/yen on the other hand did advance, rising from 114.30 to 114.80.
Acting as a backdrop, in his Senate confirmation hiring, Steven Mnuchin, who is Trump´s candidate to head the Treasury, said the President-elect´s comments about excessive strength were not meant as a "long-term comment".
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