The pound achieved a ten-day high against the kiwi yesterday, as bullish comments combined with profit taking to bring the UK currency off multi-month lows.
- The UK currency was buoyed by comments that quantitative easing is in fact having its desired effect and that the MPC may not need to extend QE in their next meeting as many has speculated they would.
- The news triggered a wave of profit taking, pushing the sterling/kiwi price up two and half cents on the day to close at 2.1849.
- There was positive news from the US yesterday in the form of corporate earnings, in particular, Goldman Sachs and Citigroup, but the rise in risk appetite failed to assist the higher-yielding currency as investors chose instead to lock in profits.
- The pound has extended its climb in trading this morning, currently edging back over 2.19 as investors continue to profits ahead of the weekend.
Related posts:
- The aussie stumbled yesterday, enabling the pound to gain as investors took profits
- Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up
- Investors were cautious yesterday ahead of an ECB rate decision, but the euro has rebounded this morning
- Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today
- Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
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