Sterling Edges Up against Easing U.S. Dollar

0
43

LONDON, May 20 Reuters Sterling edged up against the dollar on Thursday, trading above the 1.41 mark as analysts remained positive on the currencys prospects, although some warned its gains so far could prompt a bout of profittaking.

The pound is the secondbest performer among the G10 group of currencies yeartodate, up 3.5 against the U.S. dollar.

Bets on a faster economic rebound in Britain driven by its rapid vaccination programme have given the currency a boost, as has the Bank of Englands tapering of its asset purchases.

The most recent data shows an increase in long positions, meaning the market bets on more gains in the pound.

Data showing a doubling of inflation in April and a fall in unemployment in Britain have kept sterling supported this week. April retail sales data and May purchasing managers indexes are due Friday.

By 0823 GMT, sterling was 0.15 higher to the dollar at 1.4134. Against the euro, it was 0.1 lower at 86.32 pence.

We agree with investors taking a glass halffull approach to the UK economy and prospects for the pound, ING strategists said in a note to clients. We see Cable sterlingdollar in a tight 1.40904100 to 1.415060 range today.

Earlier this week, Britain lifted a number of restrictions imposed to combat COVID19, with cafes, bars and restaurants restarting indoor service and more international travel resuming.

Still, there is growing concern about the B.1.617.2 variant of the coronavirus, which British scientific advisers say will…

LEAVE A REPLY

Please enter your comment!
Please enter your name here