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Pound Trades Sideways on BoE Credit Data Ahead of Budget Speech

October 29, 2018 at 14:57 by Simon Mugo

Queen Elizabeth II looks from a 10-pound billThe British pound today traded in a tight range against the US dollar on the latest BoE credit data even as investors await the autumn UK budget speech later today. The pound’s slight rally was supported by the improved risk sentiment among investors, which supported the cable and prevented it from falling further.

The GBP/USD currency pair today traded between a high of 1.2853 and a low of 1.2805 and was stable for most of the session.

The currency pair was in a consolidative range throughout the Asian session before dipping lower in the early European session. The pair rallied slightly following the release of the monthly statistics on deposits and borrowing by UK households and businesses by the Bank of England. The net consumer credit for September came in at £0.785 billion, which was lower than the expected £1.2 billion. However, the net lending secured by dwellings was recorded at £3.89 billion, which was higher than the consensus estimate of £2.9 billion. The mortgage approvals data also came in better than expected, hence, boosting the cable.

The release of the US personal consumption expenditure for September by the Bureau of Economic Analysis in the early American session drove the pair slightly lower as most of the prints were in line with consensus estimates.

The currency pair’s short-term performance is likely to be affected by the upcoming budget speech to be delivered by the Chancellor of the Exchequer, Philip Hammond at 15:30 GMT.

The GBP/USD currency pair was trading at 1.2811 as at 14:48 GMT having dropped from a high of 1.2853. The GBP/JPY currency pair was trading at 143.99 having rallied from a low of 143.32.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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