By FX Empire.com
On Wednesday, the GBP/USD rose after the improvement in the sentiment which prompted investors to buy high-yielding currencies at the expense of refuges.
European Commission President Jose Barroso will unveil comprehensive plan on Wednesday which will include banks recapitulation, situation inGreece, the EFSF and private sector participation in bailouts to contain the European debt crisis. Commissioner Oli Rehn said on Wednesday the debt crisis could be resolved, providing hopes there is utmost determination from European officials to solve the debt problem.
Even after the rejection of the Slovak Parliament to the EFSF expansion, there are hopes that sooner or later the plan will be ratified. Slovak parties gathered on Wednesday to reach an early agreement to boost the EFSF.
On the other hand, data from theU.K.while showing a significant rise in unemployment in the three months ended August to 8.1%, the highest level in 15 years, jobless claims retreated to 17.5 thousands in September, below 20.3 thousands recorded in August and projections of 24.0 thousands to make some balance.
On Thursday, at 08:30 GMT, theUKwill release trade balance report for the month of August which is expected to show a narrowing deficit to 8700 million pounds from 8922 million pounds, according to the visible trade balance index.
At 12:30 GMT, the U.S economy will release trade balance report which is expected to show a widening deficit of $46.0 billion in August from $44.8 billion deficit a month earlier. At the same time, initial jobless claims for the week ended October 7 and continuing claims for the week ended October 1 will be available.
The data is predicted to have an impact on the pair, yet the main focus remains on the euro area to see the latest developments of the European debt woes.
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