FX round-up: Pound higher versus euro for the week
By Alexander Bueso
Date: Friday 30 Sep 2016
(ShareCast News) - Trading in futures markets was quite restrained at the end of the week, although some market commentary took note of the first weekly rise in the pound versus the European single currency in a month.
That was the result of a steady stream of slightly better-than-expected UK data coming out on Friday against a backdrop of heightened angst surrounding German lender Deutsche Bank.
Nevertheless, late afternoon reports that a settlement between Deutsche Bank and the US Department of Justice might be imminent saw some of those gains in sterling unwind.
Cable was only 0.08% higher as of 2007 BST at 1.2979 - off its best levels of the session at 1.3023 - and lower by 0.05% at 1.1550 against the euro, but earlier in the day it hit a high of 1.1622.
For the week, as of the closing bell in London the pound was 0.3% ahead versus the euro.
ONS revised its initial estimate of second quarter growth in gross domestic product one tenth of a percentage point higher to 0.7% quarter-on-quarter.
In parallel, the UK's current account deficit increased from £27.0bn, or 5.7% of GDP, in the first quarter to £28.7bn, or 5.9% of GDP in the second.
Nevertheless, that was better than the -£30.6bn shortfall which economists had pencilled in.
Acting as a backdrop, dollar/yen was higher on the heels of weaker than expected data overnight in Japan.
Consumer prices excluding those for fresh food, the Bank of Japan's preferred CPI, inflation fell at a 0.5% year-on-year clip in August (consensus: -0.4%).
In parallel, household spending in Asia's second largest economy fell 4.6% year-on-year during the month, which almost doubled the 2.5% fall expected by economists.
Euro/dollar closed up by 0.14% to 1.1238, while the US dollar spot index was to be seen drifting lower by 0.10% to 95.44.
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