Pound holds steady despite strongest UK growth in over two years, Currencies Direct says
EWU•The pound traded sideways despite the strongest UK growth in over two years, as investors saw little reason for faster monetary tightening. The dollar reached a year-to-date high before losing momentum after US jobless claims exceeded forecasts.
1. Currencies and policy
The dollar hit a year-to-date high on Thursday amid expectations of Federal Reserve tightening, then lost momentum after jobless claims exceeded forecasts. A slowdown in US producer price growth could temper expectations for a 50-basis-point Fed rate hike next month. The euro remained subdued as investors expected the European Central Bank to take a more measured policy approach than the Fed.
