British pound slips against dollar as investors turn to BoE

0

* Sterling down 0.2% against the dollar, stable against the euro

* May 6 BoE meeting in brief

* Chart: global exchange rates tmsnrt.rs/2RBWI5E

* Chart: British pound trade-weighted since the Brexit vote tmsnrt.rs/2hwV9Hv

LONDON, April 30 (Reuters) – The British pound slipped against the dollar on Friday and held up against the euro as traders withholding large bets ahead of the Bank of England policy meeting next week.

The British pound was down 0.2% to $ 1.3922, losing ground after a nine-day high on Thursday after the dollar fell to a nine-week low after the US Federal Reserve called off any discussion on the change in its monetary policy.

The dollar rebounded slightly against a basket of major currencies and advanced 0.1% for the last time – while still heading for a fourth consecutive weekly decline.

Against the euro, it was stable at 86.92 pence to the euro, pinned in the narrow range in which it traded for most of this month.

Most analysts don’t expect major changes in the Bank of England’s policy settings next Thursday.

“What is less likely is that they will commit to ending the program early,” said Stephen Gallo, European head of foreign exchange strategy at BMO Capital Markets, referring to quantitative easing ( QE).

Other market participants also see a low likelihood of its QE declining until the extent of the UK economic recovery from COVID-19 becomes clearer.

“Our baseline scenario is that the MPC (Monetary Policy Committee) postpones any collapse in QE until June,” Deutsche Bank analysts wrote. “This should give the committee confidence in the recovery.” (Reporting by Tom Wilson, editing by William Maclean)

Share.

About Author

Comments are closed.