The pound strengthened against its major opponents in early European deals on Friday amid risk appetite, as trade tensions eased and investors awaited U.S. GDP data tonight for policy outlook.
U.S. second-quarter GDP growth is expected to be anywhere between four and five percent, a very impressive number, thanks to the boost from the GOP tax cuts of late 2017.
Trade worries abated after President Donald Trump and European Commission President Jean-Claude Juncker agreed to work toward “zero tariffs” and “zero subsidies on non-auto industrial goods.”
The Bank of Japan meets next week amid speculation over whether it will shift away from its ultra-loose monetary policy.
Treasury Secretary Steven Mnuchin told CNBC on Thursday that the U.S expects to reach an agreement on NAFTA in the near future.
The pound climbed to 1.3123 against the dollar and 1.3055 against the franc, from its early 3-day lows of 1.3091 and 1.3021, respectively. On the upside, 1.33 and 1.32 are likely seen as the next resistance levels for the pound against the greenback and the franc, respectively.
The pound edged up to 0.8878 against the euro, off its early low of 0.8894. If the pound extends rise, 0.86 is possibly seen as its next resistance level.
The U.K. currency rose to 145.66 against the yen, following more than a 3-week low of 145.33 hit at 3:05 am ET. The next possible resistance for the pound is seen around the 147.00 level.
Looking ahead, U.S. GDP data for the second quarter and University of Michigan’s final consumer sentiment index for July are due in the New York session.