"Widespread strength from production and job growth, along with sustained support from monetary policy, will add fuel to the recovery"
- Bart van Ark, Conference Board Chief Economist
From the perspective of fundamental analysis the Pound is poised to appreciate further against other major currencies given stronger-than-expected growth metrics. While Tuesday's data confirms concerns that disinflationary growth will be the key theme for the policymakers and will be the determining factor for Pound's movement, they also diminish threats of the sooner-than-expected rate hike from the Bank of England.
The Pound climbed higher on Wednesday on the back of positive reading of the Conference Board leading index, which is designed to predict future performance of the economy. Though, it tends to have a muted impact on financial markets as it is based on seven indicators that were released earlier. The leading index jumped 0.5% to 108.3 in November, after a 0.4% increase in October, and posting the fifth straight monthly increase. A gauge of the current situation in the economy inched higher 0.2% to 105.7.
Deloitte's chief economist Ian Stewart also praised the U.K. economy, saying the economy has gone through a path of being one of the rich world's growth laggards and becoming one of the strongest performers in December. Investment– is the only concern for the government, as it has flatlined since the global recession.
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