Forex: GBP/USD steady on improving CBI Industrial Trends sentiment

Written by: Violina Todorova
July 24, 2013 Wednesday July 24th:_ In late Asian trading today the pound increased to a current intraday high at 1.5388 against the US dollar, but only a few hours later in the early European session the quote had fallen to its intraday low so far at 1.5334, for a drop of 0.54 percent. Following the latest economic updates from UK and US, the pair is stable around 1.5354.

The UK CBI Industrial Trends Survey – Orders data for m/m was released by the Confederation of British Industry at 11:00 BST today, checking in as a rise to -12, as against June’s -18 and matching analysts’ expectations.
CBI director of economics Stephen Gifford observed: “Manufacturers have seen a pick-up in activity across the board this quarter, with new orders and production continuing to rise. The gentle rise in confidence is being reflected in firms’ headcount, which is rising at the fastest rate in a year.”

On a quarterly basis the CBI Business Situation Balance rose to 7 in July from April’s 5, its highest level since April 2012.
From the US, the MBA’s Mortgage Applications data for last week, released at 12:00 BST, revealed a drop of 1.2 percent in the total number of filed mortgage applications, following the prior week’s fall of 2.6 percent.
The MBA also reported that fixed 30-year mortgage rates averaged 4.58 percent in the week ended July 19, down 10 basis points on the week before and the biggest weekly drop since August 2012.

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