AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'. Watch the full video here

Less Ads, More Data, More Tools Register for FREE

Sterling holds above $1.30 as dollar weakness outweighs GDP slump

Wed, 12th Aug 2020 09:45

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

By Olga Cotaga

LONDON, Aug 12 (Reuters) - Sterling held above $1.30 on
Wednesday, clinging on to recent gains on the back of dollar
weakness, which outweighed the impact of a record drop in
Britain's economic output.

The economy shrank by 20.4% between April and June, when the
country's coronavirus lockdown was tightest, data showed on
Wednesday, representing the largest contraction reported by any
major economy so far.

"The direction of the print was never in doubt. The
drop-off... may be accounted for, in part, by the timing of the
lockdown as compared with other economies," said Kieran Cleere,
Director of Market Risk Solutions at Silicon Valley Bank.

Sterling was steady at $1.3048, close to the
five-month high of near $1.32 it rose to last week, and at 90.02
pence against the euro.

June’s GDP data, meanwhile, offered the first window into
the recovery as restrictions eased and the economy began to
recoup of the losses, growing 8.7% month-on-month.

"The easier post-lockdown economic gains may soon be
realised and so markets will be looking to establish how much of
this momentum will be sustained," Cleere said.

Kit Juckes, macro strategist at Societe Generale, said
sterling/dollar would most likely be determined by the direction
of the U.S. currency rather than by economic developments in
Britain.

(Reporting by Olga Cotaga; editing by John Stonestreet)

More News

Greggs annual profit could reach pre-pandemic levels as stores reopen

Greggs annual profit could reach pre-pandemic levels as stores reopen

Today 08:23

Euro zone bond yields head back up after post-payrolls swings

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2BqrBy Dhara RanasingheLONDON, May 10 (Reuters) - Euro zone bond yields rose on Monday as investors returned their focus to a brighter economic outlook and its implications for central bank...

Today 08:22

Mirriad strikes framework agreement with mystery food and beverage firm

(Sharecast News) - Advertising company Mirriad said on Monday that it had reached a multi-brand framework agreement with an unnamed global food and beverage company.

Today 08:20

TOP NEWS: Victrex interim profit down despite higher sales volumes

TOP NEWS: Victrex interim profit down despite higher sales volumes

Today 08:16

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.