Sterling slips versus dollar and euro

  • 8/11/2021
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* Pound falls 0.1% against dollar * Flat against euro after touching highest in 18-months * Traders hold off major bets ahead of Thursday GDP data LONDON, Aug 11 (Reuters) - Sterling fell slightly against the dollar and slipped further from a 18-month high against the euro on Wednesday, with traders holding off major bets ahead of British GDP figures due a day later. Sterling fell 0.2% against the dollar to $1.38150 as the greenback rose against a basket of major currencies to a three-week top of 92.139, close to its highest this year 2021. Buoying the dollar has been impressive U.S. jobs data and from remarks by Federal Reserve officials about tapering bond buying and, eventually, raising rates, sooner than policymakers elsewhere. Stronger U.S. inflation data due later on Wednesday could add to pressure on the Fed to wind back policy support. Against the euro, sterling slipped 0.1% to 84.77 pence. . It had risen on Tuesday to its highest against the single currency since February last year, as signs of economic recovery and falling COVID-19 rates spur expectations of a far earlier interest rate lift-off compared to the euro zone. In recent weeks, the pound has performed well as falling COVID-19 cases have allowed the British government to lift most social-distancing rules, while the Bank of England (BoE) last week flagged how it might gradually rein in stimulus. Still, some analysts said second-quarter GDP figures due on Thursday could present a pitfall for sterling. “A greater chance of a decline comes tomorrow when the UK releases 2Q GDP, where we see upside risks to the 4.8% (quarter on quarter) figure,” analysts at ING wrote in a note. (Reporting by Tom Wilson; Editing by Lincoln Feast.) Our Standards: The Thomson Reuters Trust Principles.

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