FX round-up: Cable edges higher for a second day

Cable moved higher for a second day on Thursday against a backdrop of risk-aversion across all asset classes following the release of weaker than expected trade data out of China for the month of September.

The pound appreciated from 1.2207 to close at 1.2253, albeit after plumbing an intra-day low of 1.2132.

In China, data showed the trade surplus came to $41.99bn in September, down from $52.05bn in August and compared to forecasts of $53bn.

Exports in dollar terms fell 10% year-on-year in September, far more than the 3.3% decline expected, following a 2.8% dip the previous month.

Imports slid 1.9% in September, below estimates for a 0.7% increase and after a 1.5% rise in August.

The soft Chinese trade numbers sent the dollar duly lower against the Japanese yen to 103.697 from an opening level of 104.199, with 104.65 marking the intra-day high.

Euro/dollar was also on the up amid rather cautious reactions from several economists to the latest set of Federal Reserve policy meeting minutes.

Versus the greenback the single currency rose from 1.1007 to 1.1056, having dipped to 1.0985 at one point in the session.

Traders thus appeared to largely brush-off somewhat hawkish comments from Philadelphia Fed president Patrick Harker.

Speaking from Dublin, Harker said he would have felt "very comfortable" with a 25 basis point increase at the 21 September FOMC.