The British pound strengthened against the other major currencies in the early European session on Thursday, after data showed that U.K. economy grew at a slightly faster pace in the fourth quarter.
Data from the Office for National Statistics showed that U.K. gross domestic product climbed 0.5 percent sequentially in the fourth quarter, slightly faster than the 0.4 percent expansion posted in third quarter. The growth rate matched economists’ consensus.
On a yearly basis, GDP climbed 1.9 percent in the fourth quarter, in line with expectations. In 2015 as a whole, GDP increased by 2.2 percent on 2014, data showed.
Another report from the ONS showed that the index of services climbed 2.3 percent in November from previous year. Month-on-month, services output edged up 0.2 percent versus a 0.1 percent rise in October.
In the Asian trading today, the pound held steady against its major rivals.
In the early European session, the pound advanced to a 2-day high of 170.21 against the yen, from an early low of 168.67. The pound may test resistance around the 175.00 area.
Against the U.S. dollar, the euro and the Swiss franc, the pound advanced to 1.4326, 0.7615 and 1.4539 from early lows of 1.4231, 0.7663 and 1.4443, respectively. The pound may test resistance around 1.45 against the greenback, 0.74 against the euro and 1.48 against the franc.
Looking ahead, preliminary German inflation data for January, U.S. weekly jobless claims for the week ended January 23 and U.S. durable goods orders and pending home sales data, both for December, are set to be published in the New York session.
At 1:00 pm ET, German Bundesbank President Jens Weidmann is expected to speak at the Internationaler Club La Redoute in Bonn, Germany.
The material has been provided by InstaForex Company – www.instaforex.com