GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.15% against the USD and closed at 1.6038.
In the UK, mortgage approvals rose to 53,000 in October, while consumer credit retreated by £0.5 billion in October. Also, M4 money supply rose 0.2% (MoM) in October, following a 0.2% rise in September. Separately, house prices dropped 1.2% (YoY) in November, compared to a 0.9% drop in October. Also, the Confederation of British Industry’s (CBI) distributive trades survey index rose to a reading of 33.0 in November, from a reading of 30.0 in the previous month.
Earlier the Pound came under pressure after the Bank of England (BoE) warned that British banks may not have enough capital set aside as a defense against future financial market dangers due to their over-optimistic assessment of the risks facing them. The BoE’s Financial Policy Committee urged the current regulator to reassess whether banks’ capital properly reflects the risk of loans going sour and future fines for misconduct.
Additionally, the Bank of England Governor, Mervyn King, stated that banks would not have to turn to taxpayers for more capital. Initiatives by the Treasury and the Bank of England, including cheaper financing for banks if they commit to increased lending, have been helping banks to access funds.
In the Asian session, at GMT0400, the pair is trading at 1.6047, with the GBP trading marginally higher from yesterday’s close.
This morning, the Gfk consumer confidence index rose to -22 in November, from -30 in October.
The pair is expected to find support at 1.6017, and a fall through could take it to the next support level of 1.5986. The pair is expected to find its first resistance at 1.6063, and a rise through could take it to the next resistance level of 1.6079.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
