Connect with us

Top Stories

Sterling flirts with three-month high vs euro

Sterling flirts with three-month high vs euro 1

LONDON (Reuters) – Sterling inched towards a three-month high versus the euro and a one-month high against the dollar as the more positive mood on broader markets encouraged investors back into currencies considered riskier during uncertainty.

Analysts say with the conclusion of the Conservative Party leadership contest that will decide the next British prime minister not due until September and investors waiting for the Bank of England monetary policy meeting next Thursday, there have been few domestic drivers for sterling in recent weeks.

Instead, sterling has benefited from a pullback in the dollar and a euro still struggling under the weight of imminent shortages of natural gas and a weakening economy.

By 0740 GMT, the pound was up 0.1% at 83.79 pence, close to the 83.75 pence level hit on Wednesday that was the highest since May 2.

Versus the dollar the British currency was little changed at $1.2161, close to a one-month high reached on Wednesday.

“With the exception of some headlines about campaign pledges by (Conservative Party leadership contenders) Liz Truss and Rishi Sunak, there simply isn’t much that markets are looking at in terms of domestic drivers for GBP,” ING analysts said.

“Expect cable to keep being driven by the dollar and EUR/GBP to be driven by the euro. We think GBP/USD is still at risk of a return to or below $1.2000 in the coming weeks, while EUR/GBP may stay around 84 pence but is facing downside risks due to uncertainty over Russian gas supply.”

(Reporting by Tommy Reggiori Wilkes; Editing by Alison Williams)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Advertisement

Newsletters with Secrets & Analysis. Subscribe Now