Investing.com - Sterling was up against most major currencies on Thursday as world leaders prepared to meet in Germany for the G20 summit.
The UK 10-year Treasury Gilt auction was announced by the UK Debt Management Office as 1.384%, an increase on the previous month’s 1.138%. The average rate at auction is measured against the previous auctions as an indication of the government debt situation.
At 11:10 BST, the pound jumped 0.25% against the dollar. GBP/USD was 1.2967, up from the previous session close of 1.2934.
Following a hat-trick of worse than expected PMI data, the pound had failed to regain the 1.300 mark it achieved against the dollar last week. A shakier start to the third quarter than the MPC hawks would have liked. With Brexit negotiations underway, the UK general election, and a spate of terrorist attacks, business optimism in June was at its lowest level for several months.
The dollar had remained steady following Wednesday evening’s release of the minutes from June’s Federal Reserve meeting. In the meeting, Fed members decided upon a second rate hike. The minutes show a rift amongst officials on a third hike in 2017.
The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six currency majors, was 95.88, down from last session’s close by 0.09%.
UK holidaymakers will be pleased to see the euro down against the pound on Thursday. EUR/GBP was down 0.11% at 0.877.
Unlike the UK, eurozone PMI data for June was better than expected, particularly in Germany and France.
Against the Canadian dollar, the pound was up 0.10%. The slump in oil prices yesterday brought the Loonie lower. GBP/CAD was 1.6776.
GBP/NZD - the pound jumped 0.63% to 1.7858 on the New Zealand dollar.
The Australian dollar made losses this week following the dovish monetary policy statement from the RBA. GBP/AUD was up 0.46% to 1.7088
The pound rallied against safe haven currencies. At 146.97, GBP/JPY was up 0.33% while GBP/CHF was up 0.34% to 1.2512.
Investors will be watching the US jobs report tomorrow. The ADP report this afternoon will act as a preliminary reading, however the nonfarm payrolls tomorrow will give the most accurate reading of US employment.
President Trump has already made a speech in Poland, ahead of the G20 summit. Eyes will be on his first face-to-face meeting with Russian President Vladimir Putin.