UK Pound Gets Help from Better Data and the Fed

UK pound is making progress against many of its major counterparts, thanks in part to the economic data coming out of that country, and with the help of the release of the minutes from the last Federal Reserve meeting.

The latest Federal Reserve minutes are pointing to the possibility of asset purchase reduction in the United States, and there has been spillover from that announcement to the UK pound. Gilts are underperforming other European sovereigns as a result, including a widening spread between gilts and German bunds.

However, that’s not been a bad thing for the pound. Additionally, there is focus on the latest British factory orders data. It appears that new orders have come to British factories at a rate not seen for almost 20 years. Indeed, the Confederation of British Industry says that its gauge climbed to 11 in November, which is a high not seen since early 1995.

It’s also helping that the latest Bank of England minutes indicate that no new stimulus will be added to the UK economy anytime soon. As a result, the pound continues to make inroads.

At 15:24 GMT GBP/USD is up to 1.6208 from the open at 1.6172. EUR/GBP is up to 8.8347 from the open at 0.8328. GBP/JPY is up to 163.8150 from the open at 163.4950.

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