The pound advanced against other major currencies during early European session on Friday as the domestic stock markets gained. The pound rose to a 2-day high against the Swiss franc.
Taking cues from Asia, where the stocks closed the day in green, the European stocks opened the day higher.
At 4:46 am ET, U.K’s benchmark FTSE 100 index was up by 3.2 points or 0.06%.
U.K.’s visible trade deficit was GBP 8.1 billion in May, widening from a revised deficit of GBP 7.4 billion in April, data released by the Office for National Statistics showed today. Economists had forecast the shortfall to narrow to GBP 7 billion. April’s deficit was revised from GBP 7.3 billion reported initially
U.K. output price annual inflation eased to 5.1% in June from 5.5% in May, data from the Office for National Statistics showed today. Economists were expecting the annual growth to rise to 5.7% in June.
The Bank of England on Thursday decided to hold the official Bank Rate paid on commercial bank reserves at a historic low of 0.5% and further, maintained the size of the quantitative easing at GBP 200 billion to underpin the fragile economy amid severe fiscal consolidation.
The British currency inched higher against its Switzerland rival during early European deals on Friday. At 4:40 am ET, the pound hit a 2-day high of 1.6048 against the franc, compared to yesterday’s close of 1.5921. As of now, the pound is worth 1.6031 against the franc.
The pound rose against the Japanese yen during Friday’s early European session. As now, the pound-yen pair is trading a high of 134.37, up from yesterday’s closing quote of 134.08.
Against the U.S. dollar, the pound rose to 1.5207 at 4:35 am ET. The pound-greenback pair, which closed yesterday’s trading at 1.517, is now worth 1.5188.
Moving away from Asian session’s choppy trend, the pound advanced against the euro in early European session on Friday. At present, the pound is worth 0.8354 against the euro and this level may be compared to yesterday’s closing quote of 0.8371.
In economic news, German consumer price annual inflation slowed to 0.9% in June from 1.2% in May, final data from the Federal Statistical Office showed today. The rate is still well below the threshold of 2%, which is important for monetary policy, the statistical office said.
Besides the German CPI data, French and Italian industrial production for May likely influenced the euro.
Turning to the U.S., the Commerce Department is due to release its wholesale inventories report at 10:00 AM ET. Economists expect wholesale inventories at the end of May to show a 0.4% increase.