GBP Trades Sideways vs USD and EUR amid thin Data Calendar

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LONDON, May 26 Reuters Britains pound traded within recent ranges against the dollar and the euro on Wednesday, as a lack of fresh economic catalysts in a sparse data calendar kept the currency in consolidation mode.

Sterling is the second bestperforming G10 currency versus the dollar this year, up 3.4 yeartodate and trailing only the commoditylinked Canadian dollar. That performance is a result of investors betting on a quicker reopening for Britains economy on the back of its rapid COVID19 vaccination pace.

Britain commenced a third part of a phased reopening last week, allowing indoor dining in pubs and restaurants. Economic indicators such as retail sales are looking up, as are surveys of purchasing managers across industries.

By 0809 GMT, sterling was 0.05 lower against the dollar at 1.4138, some way off a threemonth high of 1.4233 hit last week.

The pound was flat versus the euro at 86.57 pence, and off a twoweek low of 86.20 hit against the common currency on Tuesday.

Most of the activity on Cable sterlingdollar recently has been a function of dollar moves, said Jane Foley, head of FX strategy at Rabobank.

The pound hasnt been able to gain any tractions vs. the euro since early in the month, which reflects the consensus view that the euro zone is heading for a strong recovery in the latter part of this year.

The only event with potential to move the currency in an otherwise thin data calendar on Wednesday was a testimony by British Prime Minister Boris…

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