Market Outlook: News from China Strengthens the Pound

Forex - Monex Europe analysts said that the pound has risen following China's commitment to implement more proactive fiscal stimulus and moderately looser monetary policy next year to boost economic growth. They noted that the announcements made during Monday's Politburo meeting supported risk appetite and provided tailwinds for the pound. The pound reacted minimally to a REC survey released on Monday, which indicated that labor demand in the UK fell in November. Analysts stated that this is noteworthy considering the Bank of England's emphasis on the absence of solid official labor market data, adding, "In our view, this situation makes the pound look somewhat strong on a tactical basis."