Pound Steadies vs. Dollar, Set for First Weekly Loss in Five

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LONDON, June 4 Reuters Sterling steadied against the dollar on Friday, making up some of its previous days losses although the currency was set for its first week of losses in five due to a broadly strengthening dollar over the past week.

A string of strong economic data releases from the United States has boosted the dollar index which measures the greenback against a basket of currencies this week to its highest level since midMay.

The gains for the buck come as investors expect the Federal Reserve may respond to the economy heating up and move towards tightening policy sooner than expected.

The pound, which is the second bestperforming G10 currency against the dollar yeartodate, has also suffered in recent days on worries that a new coronavirus variant spreading across Britain may affect plans to continue reopening the economy.

The government will review plans on June 14 to fully open the economy.

Sterling has been among the topperforming G10 currencies this year, at one point in the lead, as bets for a quick reopening of Britains economy on the back of the countrys vaccination programme.

Speculator positioning is still directionally net long the pound, which means that the market is betting on future gains for the currency against the dollar.

Strategists at ING remained broadly positive on sterlings prospects despite the newsflow.

We doubt the decision on 14 June whether to fully open up the UK economy will have a material impact on the GBP outlook, they…

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