It was all about central banks in Asia Pacific as well, and the dollar climbed to a one-week high on the Japanese yen and was last up 0.68% at 139.81.īank of Japan Governor Kazuo Ueda said on Tuesday there was still some distance to sustainably achieving the central bank's 2% inflation target, signalling his resolve to maintain ultra-loose monetary policy for the time being, in contrast to the hawkishness at other major central banks. That turned into a 60% chance of a quarter-percentage point hike after the data. and German government bonds.īefore Wednesday's data, investors had assigned a roughly 60% chance that the BoE would hike rates on Aug. The pound was overbought after the run-up in recent weeks,” he said referring to British, U.S. “Profit taking in sterling as a result should not be a surprise as Gilt yields come down vs U.S. Below forecast headline and core," said Kenneth Broux, head of corporate research FX and rates, at Societe Generale. That meant the British currency was set for its biggest percentage fall against the dollar in three weeks, as it continued to roll off a 15-month high of $1.3144 hit Thursday. The pound was last down 0.78% against the dollar at $1.2930, and also weakened versus the euro after figures showed British inflation fell more than expected in June and was at its slowest in more than a year at 7.9%. LONDON/SINGAPORE, July 19 (Reuters) - Sterling slid on Wednesday after lower-than-expected British inflation data suggested the Bank of England might not have to raise rates quite as high as had been expected, while the latest dovish comments from the Bank of Japan caused the yen to soften.
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