Sterling Jumps to Two-Week High Ahead of Key US Numbers

Sterling had slipped on the slightly disappointing data earlier in the day, but jumped to a two-week high later with the market gearing up for a slew of US data, including durable goods orders and weekly jobless claims.

The US mortgage applications data came at 12:00 GMT was a big negative surprise, weighing on the dollar strength and helping the UK pound and others.

At 12:15 GMT, GBP/USD traded at 1.5771, its highest since 13 November, and up from the previous close of 1.5709. The pair had dropped to 1.5679 after the Q3 GDP data.

UK's gross domestic output grew 3% from a year earlier in third quarter, unchanged from the previous release.

However, the total business investment in the UK grew at an year-on-year rate of only 6.3% compared to the Q2 rate of 6.7%, and against the market expectations for a rise to 9.7%.

The CBI distributive trade index for November, published later, came at 27 compared to October's 31 and market consensus of 30.

The MBA mortgage applications fell -4.3% as on 21 November compared to the previous reading of a rise of 4.9%, US data showed.

The market is now waiting for a deluge of US releases scheduled for Wednesday. Thursday the US markets will be shut for Thanksgiving Day.

Durable goods orders, personal spending, new home sales and pending home sales are the October data from the US due on Wednesday.

The jobless claims numbers due will be for the week to 21 November and Chicago PMI and the Reuters/Michigan consumer sentiment indices will be for November.