Sterling recovers from its biggest weekly loss in a year

Discussion in 'Currency Pairs' started by Larry, Oct 9, 2017.

  1. Larry

    Larry Administrator

    British pound recovered from its biggest weekly loss in a year on Monday. This is due to stronger labour costs data, which made the interests rate expectations high.Theresa May also pledged to ward off any challenge to her leadership.

    Sterling rose half a percent to $1.3180 -- recovering from the 2.5 percent it lost last week -- and was the biggest gainer among major currencies against a broadly muted dollar in a market thinned by holidays in major markets.

    British labour costs have been growing more strongly than previously announced, the Office for National Statistics (ONS) said, adding to the case for a first interest rate hike by the Bank of England in more than a decade.

    May, meanwhile, hinted at the weekend that she may be considering a cabinet reshuffle to reassert her authority, raising questions over the fate of foreign minister and Brexit campaigner Boris Johnson, who has been accused of undermining her.

    The pound has become more sensitive to political noise in recent months and some strategists said Johnson's departure, if it happens, could increase the chances of a "soft Brexit", which might be positive for sterling in the short term.

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