Pound Mixed Against Majors

Pound Mixed Against Majors


The pound showed mixed performance against other major currencies in the early European session on Monday.
While the pound fell against the dollar and the yen, it spiked up against the franc and the euro.
The pound is now trading at 1.5521 against the U.S. dollar, falling from an early Asian session's 11-day high of 1.5596. On the downside, the pound may target the 1.545 level. The pound-greenback pair closed last week's deals at 1.5579.
After hitting a high of 123.55 against the yen in early Asian deals, the pound declined. Presently, the pound-yen pair is trading at 122.65, compared to Friday's close of 123.38. On the downside, the pound may target the 122.00 level.
Against the franc, the pound is now trading near a 17-month high of 1.5306 and the next upside target level for the pound is seen at 1.55. At last week's close, the pound-franc pair was worth 1.5285.
Switzerland's industrial production grew at a slower pace of 1.4 percent annually in the first quarter after expanding by a revised 3.6 percent in the prior quarter, the Federal Statistical Office said today. Economists had forecast the output to remain flat.
New orders fell 3.9 percent, but smaller than the 5.1 percent drop logged in the fourth quarter of 2011.
Against the euro, the pound that fell to 0.7875 in early Asian deals showed choppy trading thereafter. But the pound strengthened to a new 3-1/2-year high of 0.7851 in early European trading with 0.76 seen as next upside target level.
Eurozone CPI data for June showed a monthly contraction of 0.1 percent. The latest report from Eurostat showed that inflation in Eurozone was 2.4 percent, unchanged from May. The figure matched the preliminary estimate. The rate was the lowest since February 2011.
Meanwhile, Eurozone's trade surplus rose more than expected by economists in May, a separate report from Eurostat showed.
The trade balance was in a surplus of EUR 6.9 billion in May, higher than EUR 3.7 billion in April. Economists expected the surplus to rise to EUR 4 billion.
Looking ahead, the U.S. retail sales for June and business inventories for May are expected in the New York morning session.



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