Sterling settles higher against dollar

2017-11-14 19:17:24 GMT (
Sterling settles higher against dollar

Sterling tilted higher against the dollar, following a basket of data from Britain and the US, the world's largest economy, and after a host of speeches by major global central bankers in Frankfort. 


As of 06:38 GMT, GBP/USD rose 0.21% to 1.3144 from the opening of 1.3116, with an intraday high at 1.3154, and a low at 1.3075. 


Earlier UK data showed consumer prices slowed down to 0.1% from 0.3% in September, while steadying at 3.0% y/y, missing forecasts of 3.1%, as core prices steadied as well at 2.7%. 


UK input producer prices accelerated to 1.0% from 0.2% in September, besting expectations, while on a yearly basis, prices slowed down to 4.6% from 8.1%, missing expectations of 4.8%. 


On another note, Federal Reserve Chair Janet Yellen, Bank of Japan governor Haruhiko Kuroda, Bank of England Governor Mark Carney, European Central Bank President Mario Draghi, have all participated in a panel discussion titled "At the heart of policy: challenges and opportunities of central bank communication" at the Central Bank Communications Conference hosted by the European Central Bank, in Frankfurt.


Carney said he's also trying to communicate across the year with markets to prevent misunderstandings, noting that the inflation report is one of these communicative methods, and pointing to the necessity that the public continues to have exposure to the directions of the monetary policy. 


The British minister tasked with negotiations with the European Union, David Davis, said earlier today that when a deal is reached on Brexit, it will be discussed in the Parliament and the MPs will get to vote on it, and even if the Parliament refused some deal, the country will exit the union in all cases. 


Otherwise, US producer prices rose 0.4% in October, beating expectations of 0.1%, and same as September, while core prices, excluding food and fuel prices, also rose 0.4%, same as before and passing forecasts of a 0.2% advance. 


In Frankfort, Janet Yellen said the monetary policy should be depended on the economic situation, noting the importance of the market's understanding that the direction of monetary policy isn't absolute or predetermined. 


Yellen said that every member of the FOMC expresses his\her private views in speeches and other lines of communications, noting that healthy arguments are being conducted all the time on monetary policy inside the FOMC meetings. 


Finally, Yellen said the Fed is completely aware that it might require exceptional tools to deal with shocks, noting that risks on financial stability remain moderate, and that the FOMC is taking a direction to balance the targets of inflation and employment. 


On another note, US Treasury Secretary Steven Mnuchin said earlier today he's not worries about whether the Senate tax reform bill could delay reforms, noting there were but small differences on tax cuts between the bills in the Senate and the House of Representatives, and asserting US president Donald Trump targets a growth rate of 3% or above for the economy. 

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