The pound climbed against its major opponents in European deals on Friday, as European markets rose on the Bank of Japan’s decision to expand its massive quantitative and qualitative easing as policymakers assessed it necessary to achieve the 2 percent inflation target.
In a 5-4 vote, the Policy Board led by Governor Haruhiko Kuroda decided to raise the monetary base at an annual pace of about 80 trillion yen. The earlier plan was to increase it by about 60-70 trillion yen.
Strong U.S. GDP data released overnight kept investor sentiment buoyant and also supported Fed’s assessment that U.S. economy is growing.
The pound extended early gains against the yen, approaching a 6-week high of 178.98. The pound may possibly find resistance around the 180.00 zone.
Japan’s housing starts declined further in September, data from the Ministry of Land, Infrastructure, Transport and Tourism showed.
Housing starts slid 14.3 percent year-on-year in September after easing 12.5 percent in August.
The pound strengthened to more than a 2-week high of 1.5365 against the Swiss franc, compared to 1.5293 hit at yesterday’s close. The next possible resistance for the pound lies near the 1.55 mark.
The pound advanced to 0.7849 against the euro, its strongest since October 10. If the pound extends rise, 0.78 is seen as its next possible resistance level. At yesterday’s close, the pair was worth 0.7880.
Eurozone inflation rose slightly in October as expected by economists, flash data from Eurostat showed.
Inflation rose to 0.4 percent in October from 0.3 percent in September. It has been below the 2 percent ceiling since February 2013.
The pound bounced off to 1.6010 against the greenback, off early low of 1.5960. Next key resistance for the pound may be eyed around the 1.61 level.
Looking ahead, Reuters/University of Michigan’s October consumer sentiment is due shortly.
The material has been provided by InstaForex Company – www.instaforex.com