(Bloomberg) — The pound climbed to the highest since September, shrugging off Brexit concerns as it got a boost from a weaker dollar.
Sterling reversed a weekly decline as the dollar fell ahead of a U.S. inflation report that follows weaker-than-expected producer prices on Thursday. The pound had been pressured earlier this week by continued signs of division over Brexit and disappointing U.K. economic data.
“It’s likely being dragged higher by general dollar selling,” said Neil Jones, head of currency sales at Mizuho Bank Ltd. “It will probably target highs for last year but the market is not bullish the pound per se. Political and economic factors should weigh overall.”
The gained 0.6 percent to $1.3617. It weakened 0.2 percent to , as the common currency rallied following a preliminary agreement in German coalition talks. The yield on U.K. 10-year government bonds rose two basis points to 1.33 percent.
Pound traders are likely to continue to focus on developments in the Brexit talks, as banks including Morgan Stanley were said to be activating contingency plans and setting up headquarters in Frankfurt.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Latest posts by investing.com (see all)
- Forex- U.S. Dollar Falls as Sterling Rises - March 20, 2018
- Forex – GBP/USD Surge Above $1.40 Weighs on Dollar Ahead of FOMC - March 19, 2018
- Forex – Dollar Index Holds Steady with Fed Meeting in Focus - March 19, 2018