Pound Mixed Against Majors

Pound Mixed Against Majors




U.K.'s sterling showed mixed trading in early European trading on Thursday. While the pound edged higher against the dollar and the yen, it declined against the euro and the Swiss franc.
European shares are trading mixed, with the U.K. FTSE 100 index rising 0.30 percent while Germany's DAX dropped 0.23 percent and France's CAC-40 index slipped to 0.16 percent.
In economic news, the number of mortgage approvals for house purchase in the U.K. increased more than expected in January, data released by the British Bankers' Association (BBA) showed today.
Mortgage approvals totaled 38,092, up from an upwardly revised 36,553 in December. Economists had forecast approvals to come in at 36,250.
The pound stabilized against its US counterpart on Thursday, briefly rebounding after having touched the neckline of a double top reversal formation in the daily chart. The cable managed from falling below the 1.5650 support level and appreciated almost 0.5 percent from that point so far.
The sterling also touched near 126.0 against the yen around 5:30 am ET, up from a 6-day low of 125.51 hit in the Asian session. The next barrier for the pair could be around the 126.70 level and a move beyond the 126.90 resistance level could set its peak since the Bank of Japan intervened in the market on October 31, 2011.
The pound plunged to 1.4206 against the Swiss franc around 4:40 am ET, its lowest since November 4, 2011. Against the euro, the British currency reached a fresh 2-month low of 0.8491. The pound recovered some of its losses against both the franc and the euro and is now trading at 1.4246 and 0.8466, respectively.
German business sentiment improved more than expected in February, reports said Thursday, citing a survey from the Munich-based Ifo institute. The confidence index rose to 109.6 from 108.3 a month ago. Economists had expected the index to climb to 108.8.
At the same time, Germany's leading economic indicator increased for the third consecutive month in December, data from a survey by Conference Board showed today.
The leading economic index increased to 103.9 in December from 103.6 in November. In October, the reading was 103.5. The latest growth in the index was the third in a row.
Meanwhile, the coincident economic index, which measures the current situation, dropped to 106.3 in December from 106.5 in the previous month.
Looking ahead, the U.S. house price index for December and the weekly jobless claims for the week ended February 18 are expected in the New York morning session.

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