(MENAFN– ecpulse)
Pound slipped lower against the U.S. dollar on Thursday, after data showed that the UK economy expanded in line with expectations in the last quarter, while annual growth figure were downwardly revised.
The final data from the Office for National Statistics showed today UK economy expanded 0.7 percent sequentially in the second quarter as estimated in August. The GDP expanded 1.3 percent in the second quarter from a year ago, which was revised down from the previously estimated 1.5 percent.
The pound is currently trading lower against the dollar at 1.60495. The GBPUSD pair has so far recorded a session high of 1.60949, and a low of 1.60348.
The yen dropped for the first time in five days against the dollar amid speculation the Japanese government will consider a corporate tax cut, and ahead of Prime Minister Shinzo Abe’s stimulus package announcement on October.
Yen declined against the dollar after Kyodo News reported, said that Prime Minister Shinzo Abe’s government will probably raise the country’s sales tax at the same time as he announces economic stimulus package due on October 1 st , ruling Liberal Democratic Party tax panel Chief Takeshi Noda told reporters today.
The yen fell against the dollar with the USDJPY pair coming in at a high of ¥98.528 from a low of ¥98.264, after kick starting Tuesday’s session at ¥98.415.
Euro dropped on Thursday as investors awaited talks between Chancellor Angela Merkel’s victorious party bloc and possible coalition candidates after Finance Minister Wolfgang Schaeuble signaled that Merkel`s party may compromise on the tax raises demanded in order to form a coalition government with the defeated center-left Social Democrats (SPD).
On data front, Eurozone broad money supply growth accelerated in August, , the European Central Bank report showed today. Monetary aggregate M3 grew 2.3 percent from a year ago, in line with forecast, after rising 2.2 percent in July.
The EURUSD pair is currently trading at $1.34981, after starting the trading at $1.35253, while hitting a high of $1.35454 and a low of $1.35007.
Finally, investors will shift focus to the final reading of U.S. second quarter GDP due later in the day. The U.S. weekly jobless claims for the week ended Sep. 21 along with pending home sales for August are also set for release during the U.S. session.
Stronger-than-expected GDP data would likely fuel speculation that the Federal Reserve could announce a stimulus reduction before the year end.
The USDIX index is currently trading around 80.54 from the session’s opening of 80.46 after hitting a high of 80.61 and a low of 80.39.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.