Sterling was the best performer amongst the majors today after the release of strong UK GDP data. Growth in the British economy rose 1 percent in the third quarter which was better-than-expected.
The improved growth data indicates that the UK economy has left the recession and because of this the Bank of England will be less likely to introduce more monetary easing at its meeting next month.
The British pound jumped 0.6 percent against the dollar in reaction to the news, hitting a one-week high of $1.6144.
Yen weakened further as speculation is becoming firmer that the Bank of Japan will ease monetary policy next week, as a measure to stimulate the Japanese economy following Japan’s recent trade deficits.
USDJPY hit a four-month high of 80.210 on the EBS trading platform, the highest since June 25. Euro also gained against the broadly weaker yen, moving closer to a 5-1/2 month high of 104.59 yen. EURJPY hit a European session high of 104.13 yen.
Euro extended its advance against the dollar today, climbing to as high as $1.2996. The single currency moved off a ten-day tough last in New York trading on Tuesday after markets reacted positively to the US Federal Statement, which said it will maintain stimulus measures to help prop up the US economy.
Looking ahead on the economic calendar in the US session, we have US data on Core Durable Goods Orders, Unemployment Claims and Pending Home Sales.