Stg rises vs dlr, dips vs euro; BoE mins awaited

Mon Nov 16, 2009 9:21am GMT
 
Email | Print | | Single Page
[-] Text [+]

* Sterling edges up vs weaker dollar; dips vs euro

* BoE mins, UK inflation, retail sales data eyed this week

* Focus still on whether or not BoE will increase QE again

LONDON, Nov 16 (Reuters) - Sterling edged up against the dollar and dipped against the euro on Monday, with trade quiet as investors awaited minutes to the Bank of England meeting and inflation data due later this week.

The dollar drifted lower across the board after U.S. President Barack Obama's first trip to Beijing dampened speculation that China may allow the yuan to appreciate any time soon. [nOBAMAASIA]

But the focus for sterling remained on whether or not the Bank of England has finished its quantitative easing programme after it scaled back the pace of increase in asset purchases to 25 billion pounds earlier this month.

In this regard, Wednesday's BoE minutes will be closely watched to see whether any policymakers, particularly bank governor Mervyn King, voted either for a bigger increase or for no increase at all. [ID:nLD439960]

"Against the dollar, sterling is gaining in line with riskier assets as in this environment it tends to appreciate," said Paul Robinson, chief sterling strategist at Barclays Capital.  Continued...

 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives

Most Popular Business News on Reuters UK

  • Articles
  • Videos