Sterling ticks lower versus dollar in quiet session
By Medha Singh
Nov 28 (Reuters) -Sterling edged lower against a firm dollar on Thursday and gained slightly versus the euro in a quiet trading session due to a U.S. holiday.
The pound retreated 0.1% at $1.26625 but was still headed for its best week in 11 as the greenback slid this week. Trading volume was thin across markets as U.S. stocks and bonds markets were shut due to the Thanksgiving holiday.
Investors were also preparing to close the books on a volatile month that pushed up the dollar to over four-month highs and weighed on most major currencies.
The pound's losses this month, however, have been shallower than the euro's helped by bets on a more hawkish Bank of England policy stance and the looming U.S. tariff threat on the euro zone under incoming U.S. President Donald Trump.
"No news is seemingly good news for sterling at present," said Nick Rees, currency analyst at Monex Europe.
"We are biased to think that another day of sterling outperformance is likely, absent any surprises."
The relative changes in rate expectations has played in the British currency's favour lately.
The Bank of England move is expected to deliver 70 basis points (bps) of rate cuts by the end of 2025 compared to 145 bps by the European Central Bank and 75 bps by the Federal Reserve.
The pound was a fraction stronger on the euro with one euro at 83.26 pence EURGBP=D3. The common currency is set for its biggest monthly decline against the pound since January.
Against the yen, the biggest mover in currency markets on Thursday, the pound was up 0.4%, at 192.33 yen, its first rise in six sessions GBPJPY=R.
Markets were little changed after the latest survey data from the Confederation of British Industry (CBI) said business sentiment in Britain's services sector is falling at the fastest rate in two years, partly as a result of tax rises in finance minister Rachel Reeves' first budget on Oct. 30.
The gloom in the CBI survey has also been reflected in other surveys. Last week the S&P Global purchasing managers' index pointed to economic contraction for the first time in 13 months.
Graphic: World FX rates in 2023 http://tmsnrt.rs/2egbfVh
Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
Reporting by Medha Singh
Editing by Alexandra Hudson
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
