The dollar clung on to its recent small gains on Wednesday as traders looked to upcoming U.S. inflation data and a European Central Bank (ECB) meeting to gauge the pace of global recovery and policymakers’ thinking about paring back stimulus. Investors have piled up bets against the dollar, but are growing nervous about whether the .
The dollar hovered at the lower end of recent gains on Wednesday as traders looked to upcoming U.S. inflation data and a European Central Bank (ECB) meeting to gauge the pace of global recovery and policymakers' thinking about paring back stimulus.
The pound was little changed on Wednesday as investors weighed the possibility that a COVID variant, first found in India, could delay the final phase of reopening in Britain on June 21..
Versus the euro, the pound was 0.2% higher at 86.19 pence.
Sterling is a top-performing G10 currency this year and has benefited from positive global investor sentiment towards the UK following Britain’s speedy vaccination program.
Britain recorded no new deaths within 28 days of a positive COVID-19 test on Tuesday for the first time since March 2020. The figure comes after a national holiday, a factor which has in the past skewed the data.
But investors have turned more cautious amid fears around the spread of COVID variants in Britain, analysts at ING said in a note to clients.
“Concerns about the spread of the Indian COVID variant and the risks to the 21st June full reopening plans have yet again weighed on GBP,” said Petr Krpata, Chief EMEA FX and IR strategist at ING.
Tuesday, 11 May 2021 05:48 PM MYT
A British Pound Sterling note is seen in this June 22, 2017 illustration photo. Reuters pic
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LONDON, May 11 Sterling steadied above US$1.41 (RM5.80) today after posting its best day against a weakening dollar at the start of the week on market relief over Scottish election results, improved economic forecasts, and lockdown easing measures.
Analysts say the results of the Scottish election in which the Scottish National Party did not secure an outright majority was a relief for the currency, which had been trading away from its fair value against the euro owing to the election uncertainty.