PDQFX Menu

// GBP

Friday 10th March 2017

Interest rate trends remained negative for the UK currency on Thursday as gilt yields were broadly stable.

Interest rate trends remained negative for the UK currency on Thursday as gilt yields were broadly stable while US benchmark yields moved higher and there was further upward pressure on German yields after the ECB meeting. Media reaction to the budget was generally lukewarm with concerns over the medium-term outlook which also had some negative impact on market sentiment, especially with a row over tax increases for self-employed workers. A further decline in energy and commodity prices also had some negative impact on the UK currency with Brent dipping below the $52.00 p/b level to the lowest level for three months before a slight recovery.

The UK currency was unable to break above the 1.2200 level against the dollar and the Euro moved above the 0.87 level for the first time in over seven weeks. Sterling remained on the defensive on Friday amid expectations that Bank of England would maintain a very loose policy over the medium term to underpin growth.

Sign up to receive our daily currency updates

PDQFX

Sign up to receive our daily currency updates