The English pound was set to mark a second-straight week of gains on Friday against the world's reserve currency as indications noted the U.K. economy is growing stronger, Bloomberg reports.
Economic data about the U.K. labor market prompted the pound to advance to its top value in eight weeks against the greenback on Thursday. Government bonds issued by England climbed as the trade week came to a close.
"The market is obsessed with the economic momentum, but there is a substantial output gap in the U.K., which will require several years of good economic performance to close," strategists with Morgan Stanley stated, according to Bloomberg. "The Bank of England will make it clear pretty soon that it is focusing on the output gap."
The pound was hovering on Friday against the dollar while its weekly advance registered at about 0.9 percent.
Eight of nine BOE policy makers voted against the interest rate plan of Mark Carney, who began his tenure as governor of the body earlier this summer, according to minutes of the most recent policy meeting as cited earlier this week by The Mirror.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.