Wednesday, 25 April 2018 16:37 WIB |
Sterling fell against the dollar on Wednesday as the U.S. currency strengthened on the back of rising Treasury yields, while traders remained cautious ahead of British GDP numbers due on Friday
The economic growth release will be the last key data released before the Bank of England's Monetary Policy Committee meeting early next month, and markets are split over whether the central bank will raise interest rates. That sent sterling plummeting from post-Brexit vote highs and left it down for the month of April.
The pound, however, had snapped its losing streak and risen on Tuesday and overnight on news of a potentially positive M&A deal, RBC analysts said in a note. But with the dollar rebounding on Wednesday, investors sold the pound.
The pound fell 0.2 percent to $1.3948 as the dollar gained across most major currencies.
Sterling remains more than four cents off its post-Brexit vote highs of $1.4377 hit last week.
Against the euro, which some analysts say is currently a better gauge of demand for pounds given there has been considerable dollar-specific news this week, sterling gained 0.1 percent to 87.425 pence per euro.
Source : Reuters