Friday, 13 April 2018 17:12 WIB |
Sterling rose to a new 10-week high against the dollar on Friday and pulled itself out of a six-month trading range against the euro, prompting investors to unwind their long euro positions.
Against the euro, the pound has been trapped in a 86.5 pence to 90 pence per euro range for nearly six months, but cautious minutes from the European Central Bank this week and firm expectations of a rate hike from the Bank of England in May pushed the British currency to an 11-month high.
Against the euro, sterling rallied 0.4 percent to 86.32 pence per euro, its highest since late May 2017. On a weekly basis, it is set for its biggest gain since Dec. 1.
Sterling also pushed towards a new post-Brexit referendum high versus the dollar, rising 0.4 percent to $1.4296. It hit its highest since the 2016 vote in late January 2018, at $1.4346.
Expectations of a rate rise have been a major driver of sterling™s gains in recent days while the euro has suffered from from more top policymakers™ comments about its recent strength, and some lacklustre data.
The market is pricing in a 65-percent chance of a 25 basis point hike next month.