DAILY CURRENCY UPDATE
GBP/USD trades near 5-year highs after U.K. data
The pound was trading near five-year highs against the U.S. dollar on Friday, after the release of upbeat U.K. public sector borrowing data and as the Federal Reserve's latest policy meeting continued to weigh on the greenback.
GBP/USD hit 1.7059 during European morning trade, the session high; the pair subsequently consolidated at 1.7055, edging up 0.09%.
Cable was likely to find support at 1.6960, the low of June 16 and resistance at 1.7040.
Official data showed that U.K. public sector net borrowing rose to £11.48 billion in May, from a upwardly revised £9.00 billion the previous month. Analysts had expected public sector net borrowing to rise to £12.00 billion last month.
Demand for the pound also continued to be underpinned by expectations that the Bank
of England will raise interest rates ahead of other central banks.
EUR/USD near 2-week highs despite German PPI
The euro edged up against the U.S. dollar on Friday, to trade near two-week highs despite the release of disappointing German producer price inflation data, as the Federal Reserve's latest policy statement continued to dampen demand for the greenback.
EUR/USD hit 1.3643 during late Asian trade, the session high; the pair subsequently consolidated at 1.3624, adding 0.12%.
The pair was likely to find support at 1.3542, the low of June 18 and resistance at 1.3668, the high of June 9.
Official data earlier showed that German producer price inflation fell 0.2% last month, compared to expectations for a 0.2% rise, after a 0.1% downtick in April.
Dollar holds steady against majors in early Asian trade
The dollar held steady against major currencies in early Asia on Friday with the Japanese yen flat and the Australian dollar slightly stronger.
Bank of Japan Governor Haruhiko Kuroda is due to deliver a brief speech at an annual meeting of credit unions in Tokyo, starting at 1536 local time (0636 GMT).
The day ahead is otherwise light on data in the region. USD/JPY traded at 101.93, down 0.01%, while AUD/USD held at 0.9401, up 0.03%.
Overnight, the dollar traded largely lower against most major currencies after the Federal Reserve's Wednesday policy statement left investors concluding that interest rates will remain low for the foreseeable future, while the insurgency in Iraq also softened the greenback.
The Federal Reserve on Wednesday left benchmark interest rates unchanged at 0.00- 0.25% and cut its monthly bond-buying program to $35 billion from $45 billion in a widely expected move.
Still, the dollar weakened after the Fed didn't suggest how much time will elapse after its monthly stimulus program ends and when interest-rate hikes begin, with investors concluding that the Fed will take its time to tighten policy.
Geopolitical concerns weakened the greenback as well.
Fighting between Iraqi security forces and Sunni insurgents continued on Thursday, while U.S. President Barack Obama said he stood ready to take "targeted and precise" action to control the violence, while reports that Iran is also ready to battle the insurgency sparked fears of a civil war.
GBP/USD trades near 5-year highs after U.K. data
The pound was trading near five-year highs against the U.S. dollar on Friday, after the release of upbeat U.K. public sector borrowing data and as the Federal Reserve's latest policy meeting continued to weigh on the greenback.
GBP/USD hit 1.7059 during European morning trade, the session high; the pair subsequently consolidated at 1.7055, edging up 0.09%.
Cable was likely to find support at 1.6960, the low of June 16 and resistance at 1.7040.
Official data showed that U.K. public sector net borrowing rose to £11.48 billion in May, from a upwardly revised £9.00 billion the previous month. Analysts had expected public sector net borrowing to rise to £12.00 billion last month.
Demand for the pound also continued to be underpinned by expectations that the Bank
of England will raise interest rates ahead of other central banks.
EUR/USD near 2-week highs despite German PPI
The euro edged up against the U.S. dollar on Friday, to trade near two-week highs despite the release of disappointing German producer price inflation data, as the Federal Reserve's latest policy statement continued to dampen demand for the greenback.
EUR/USD hit 1.3643 during late Asian trade, the session high; the pair subsequently consolidated at 1.3624, adding 0.12%.
The pair was likely to find support at 1.3542, the low of June 18 and resistance at 1.3668, the high of June 9.
Official data earlier showed that German producer price inflation fell 0.2% last month, compared to expectations for a 0.2% rise, after a 0.1% downtick in April.
Dollar holds steady against majors in early Asian trade
The dollar held steady against major currencies in early Asia on Friday with the Japanese yen flat and the Australian dollar slightly stronger.
Bank of Japan Governor Haruhiko Kuroda is due to deliver a brief speech at an annual meeting of credit unions in Tokyo, starting at 1536 local time (0636 GMT).
The day ahead is otherwise light on data in the region. USD/JPY traded at 101.93, down 0.01%, while AUD/USD held at 0.9401, up 0.03%.
Overnight, the dollar traded largely lower against most major currencies after the Federal Reserve's Wednesday policy statement left investors concluding that interest rates will remain low for the foreseeable future, while the insurgency in Iraq also softened the greenback.
The Federal Reserve on Wednesday left benchmark interest rates unchanged at 0.00- 0.25% and cut its monthly bond-buying program to $35 billion from $45 billion in a widely expected move.
Still, the dollar weakened after the Fed didn't suggest how much time will elapse after its monthly stimulus program ends and when interest-rate hikes begin, with investors concluding that the Fed will take its time to tighten policy.
Geopolitical concerns weakened the greenback as well.
Fighting between Iraqi security forces and Sunni insurgents continued on Thursday, while U.S. President Barack Obama said he stood ready to take "targeted and precise" action to control the violence, while reports that Iran is also ready to battle the insurgency sparked fears of a civil war.
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