1 Dec 2014
Sterling overcomes decline of the oil price – KBC
FXStreet (Barcelona) - The KBC Research Desk notes that decent UK data supported Sterling’s comeback after low Oil prices caused it to decline to 1.5590 levels in the Asian session.
Key Quotes
“Cable touched a minor correction below 1.5590 in Asia and EUR/GBP filled bids in the 0.7975 area as Asian investors contemplated the impact of the ongoing decline in oil prices.”
“Brent oil touched a new correction low below $68/barrel, but turned back north during the morning trade in Europe. It is still impossible to say whether this is more than a brief uptick in an oversold market.”
“Even so, ‘oil currencies’ like sterling (but also the likes of the Norwegian Crown) enjoyed a breather. The rebound of sterling was in the first place oil‐inspired, but domestic data played a role too.”
“The UK November Manufacturing PMI rebounded slightly from 53.3 to 53.5 (53 was expected). The report suggests that the UK remains in recovery modus.”
“The combination of decent UK eco data and a stabilisation in the oil price supported sterling. EUR/GBP declined back to the 0.7930 area. Cable rebounded more than one big figure and regained the 1.57.”
Key Quotes
“Cable touched a minor correction below 1.5590 in Asia and EUR/GBP filled bids in the 0.7975 area as Asian investors contemplated the impact of the ongoing decline in oil prices.”
“Brent oil touched a new correction low below $68/barrel, but turned back north during the morning trade in Europe. It is still impossible to say whether this is more than a brief uptick in an oversold market.”
“Even so, ‘oil currencies’ like sterling (but also the likes of the Norwegian Crown) enjoyed a breather. The rebound of sterling was in the first place oil‐inspired, but domestic data played a role too.”
“The UK November Manufacturing PMI rebounded slightly from 53.3 to 53.5 (53 was expected). The report suggests that the UK remains in recovery modus.”
“The combination of decent UK eco data and a stabilisation in the oil price supported sterling. EUR/GBP declined back to the 0.7930 area. Cable rebounded more than one big figure and regained the 1.57.”