Money Pound surges to 5-week high against dollar despite mixed UK economic data

04:20  11 september  2017
04:20  11 september  2017 Source:   ibtimes.co.uk

Deutsche Bank boss tells ECB to get a grip on 'cheap money'

  Deutsche Bank boss tells ECB to get a grip on 'cheap money' John Cryan says stock, bond and property price bubbles are surfacing all over the eurozone.Speaking at a banking conference in Frankfurt, Cryan said the ECB's policy, which has seen it print more than €2trn (£1.84trn) so far, had become a cause for concern.

The pound surged to a five - week intraday high versus the dollar on Friday (8 September) and held firm against the euro, as UK manufacturing data pointed to an upbeat picture.

The pound has fallen steadily against the dollar since reaching a post-EU referendum high of .43 earlier this month. On Monday, it slipped to a five week low after a series of disappointing economic indicators.

British pound sterling street© Reuters British pound sterling street

The pound surged to a five-week intraday high versus the dollar on Friday (8 September) and held firm against the euro, as UK manufacturing data pointed to an upbeat picture.

Earlier in the session, the Office for National Statistics said manufacturing output rose 0.5% in July, boosted by improving car production, but growth in the broader measure of industrial output slowed to 0.2% from 0.5%.

However, the mixed picture did not stop the sterling from firming up against major crosses.

At 4:31pm BST, the pound was up 0.72% against the dollar, changing hands at $1.3195 having reached as high as $1.32 around midday.

It is now clear the weak pound is doing 'more harm than good'

  It is now clear the weak pound is doing 'more harm than good' PA Images British Chambers of Commerce (BCC) argues sterling depreciation doing "more harm than good" for the economy.  

Pound SURGES to seven week high against the dollar Bank of England HOLDS interest rates. THE pound has surged to a seven- week high against the dollar as “tectonic plates shift” at the Bank of England and sterling is buoyed by this week 's Brexit breakthrough.

Pound surges to 5 - week high against dollar despite mixed UK economic data . Earlier in the session, the Office for National Statistics said manufacturing output rose 0.5% in July, boosted by improving car production, but growth in the broader measure of industrial output slowed to 0.2% from

The pound also got respite against the euro holding firm near the €1.10 mark up 0.66%.

Kit Juckes, head of forex at Societe Generale and IBTimes UK columnist, said the session has seen dollar weakness extend, allowing the pound to rebound as the UK released better than expected trade and industrial production data, just as the euro spiked to near three-year highs against the dollar, changing hands at $1.2029, up 0.05%.

"Dark clouds over the eurozone continue to lift," Juckes added.

The European Central Bank (ECB) left policies unchanged at its meeting on Thursday. However, President Mario Draghi suggested October might be the month to decide the future of the central bank's €2.3trn (£2.09trn) bond-buying programme.

Lukman Otunuga, research analyst at FXTM, said Draghi's cautious tone was unable to tame the rampant euro bulls, sending the EUR/USD to levels not seen since January 2015.

This Hotel Offers The Ultimate In Sweet Dreams: A 10-Pound Doughnut

  This Hotel Offers The Ultimate In Sweet Dreams: A 10-Pound Doughnut When it comes to dinosaur-sized desserts, this 10-pound doughnut really takes the cake. The prodigious pastry is part of a “DoNut Disturb” package being offered by The J.W. Marriott Desert Springs Resort & Spa in Palm Desert, California.Guests who plop down $219 for the deal will get a night at the hotel and $50 worth of resort credit. However, the most exciting selling point is getting a huge 10-pound pink doughnut ― the stuff of Homer Simpson’s wet dreams ― delivered straight to the door.The New York Post points out that the average doughnut weighs about 1.

Pound to euro exchange rate: GBP falls despite UK data . Pound V euro: GBP exchange rate surges as employment figures impress. Most read in City & Business. Bitcoin SHOCK: 800 cryptocurrencies are DEAD as Bitcoin loses 70 per cent off its high .

The pound has jumped off the back of positive economy news. Sterling is now sitting at 1.33 at a seven- week high against the dollar and 1.19 against the euro, after data this morning revealed the UK 's service sector had a record rise in output during August.

The euro's aggressive appreciation continues to suggest that bullish investors have built immunity into Draghi's dovish mantra, with most focusing on Europe's encouraging macro fundamentals and quantitative easing (QE) tapering expectations.

"While Draghi stated that the recent volatility in the euro required close attention and is a source of uncertainty, investors seemed to be more interested in the stronger than expected Eurozone growth seen so far this year. What really gave the euro bulls a shot in the arm, was when Draghi stated that the bulk of the QE decision will be made in October."

HSBC: 'We were wrong' to think the pound would stay weak in 2017 .
Europe's largest bank by assets reverses direction on the pound and admits being wrong about sterling in 2017. LONDON — "We were wrong.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!