Sterling Wobbles Amid Dollar Strength and Euro Pressures
The British pound reached a 10-week low against the dollar and near a two-year low against the euro due to the EU-US trade deal announcement. The pound's fluctuation, influenced by global trade developments and interest rate prospects, underscores economic complexities between the UK and the Eurozone.
The British pound experienced a significant drop to a 10-week low against the dollar, also hovering near a two-year low against the euro. This came as markets continue to process the recent announcement of a trade deal between the European Union and the United States.
On Tuesday, the pound slightly recovered to $1.33570 against the dollar after dipping to $1.3316, the lowest since May 23. The dollar's strength has been boosted by news of a framework trade pact between the US and EU, aiming to prevent a global trade war. Investors are also eyeing upcoming meetings from the Federal Reserve and Bank of Japan.
The euro saw a minor slide of 0.1% against the pound, trading at 86.71 pence after hitting a two-year high of 87.44 pence on Monday. Factors including a more favorable fiscal outlook for the eurozone compared to the UK are influencing these currency movements. Meanwhile, UK inflation signals and improving consumer spending add layers to the economic narrative.
(With inputs from agencies.)
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