The British Pound Sterling, on Friday, June 16, steadied at more than 1.5 percent above its low point for the week over the possibility of the Bank of England raising interest rates.
Sterling had surged to its highest in a week against the euro on Thursday after it emerged that three members of the Bank of England’s policy committee had voted for a rise in interest rates.
At a time when the BoE has blamed a rise in inflation past its 2 percent target on a weak pound, traders read the split vote as a warning that officials could seek to defend the currency with rhetoric or action, even as the economy overall slows.
In trade-weighted terms, the pound was another 0.1 percent higher in morning trade in London.
“Sterling will have another stab at rising (today),” said Naeem Aslam, Chief Market Analyst with retail broker Think Markets in London.
“But investors would remain quick in taking the profit off the table if we continue to fail (to break) the resistance of $1.2820. (That) would confirm the downward bias.”
By 0747 GMT, the pound had gained 0.2 percent at $1.2778 and was roughly flat at 87.34 pence per euro, Reuters reports.
