Sterling Dips on Euro Bounce

تم نشره في Mon 28 November / Nov 2016. 01:00 AM
  • A bank employee counts pound notes at Kasikornbank in Bangkok, Thailand October 12, 2010. - (REUTERS)

LONDON —Sterling touched a two-week high against the dollar but slid back against the euro on Monday, with the day's main focus likely to be European Central Bank chief Mario Draghi's testimony in the European Parliament.

With 10 days until a policy meeting long expected to signal the pace of quantitative easing next year, Draghi's comments have the potential to shift the euro higher after two better days driven in part by suggestions the bank could hold off on any signal of easier policy.

The single currency, also helped by Sunday's victory for Francois Fillon in the French right's presidential primary, was 0.2 per cent higher against sterling on Monday after racking up its worst run of weekly losses against the pound since early 2015 last week.

Against the dollar, sterling was just 0.1 per cent higher at USD1.2488, having touched USD1.2532 in Asian trading.

The pound's long-term correlation with the dollar has kicked back in as the U.S. currency rallied in the past month and some major investors began to argue the market had come far enough to account for the initial risks related to Britain's planned departure from the European Union.

That has made sterling among the best performing major currencies and given food to thought to the bears calling for a fall to USD1.15 or lower in the first half of next year.