Pound Touches Highest Since September as Dollar Weakens

© Bloomberg. British five and ten pound banknotes and one pound sterling coins stand in this arranged photograph in London, U.K., on Tuesday, Sept. 19, 2017.

(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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.

Comments

comments