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The pound rose for the first time in five days after a Bank of England official said in a newspaper interview that he expects interest rates to rise.
The British currency rebounded from near a three-month low after BOE Markets Director Paul Fisher told the Daily Telegraph the U.K.’s borrowing costs will “head back to a normalized position” of 5 percent.
The yen gained for a fourth day versus the dollar, its longest streak since Oct. 8, on signs China is taking more measures to cool growth.
New Zealand’s currency surged as Finance Minister Bill English said the nation’s economic expansion will accelerate next year.
EUR/USD: the pair shown high in the field of $1,3150 then decreased.
GBP/USD: the pair shown high in the field of $1,5430 then decreased.
USD/JPY: the pair decreased below mark Y83,00.
UK data at 0930GMT includes the latest Index of Services data as well as the latest BBA Loans for House Purchase.
It is a busy US calendar, starting at 1300GMT with the Building Permits Revision but heating up at 1330GMT with Durable Goods Jobless Claims and also Personal Income data. Durable goods orders are forecast to fall 1.0% in November after sharp movements in the previous two months. Boeing reported 17 aircraft orders in November, down sharply from 108 in October. Initial jobless claims are expected to hold steady at a 420,000 level in the December 18 employment survey week, down from the 441,000 level in the November 13 employment survey week. While claims have been on a downward trend, the four-week moving average is
likely to rise in the current week unless claims fall below 410,000.
Personal income is expected to rise a modest 0.3% in November, as payrolls were up only 39,000, the workweek was unchanged at 34.3 hours, and hourly earnings growth was flat. However, PCE is expected to rise 0.5% in the month, as retail sales rose 0.8% and non-auto retail sales was up 1.2%. The core PCE price index is expected to rise 0.1% after two flat readings in September and October. At 1455GMT, the Michigan Sentiment index is expected to be revised up slightly to a reading of 74.6 in December, still well above the 71.6 final reading for November. At 1500GMT, new home sales are expected to rise to a 304,000 annual rate in November after dipping to a near record low in October.
Late data then sees the 2130GMT release of M2 money supply data.
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