European Stock Markets
The pound held steady on Thursday near four-month lows as traders
shrugged off data showing industrial output barely rose in March and
readied for a Bank of England policy decision expected to keep interest
rates on hold.
Sterling has tumbled in recent weeks from its post-Brexit vote highs of close to $1.44 to below $1.35, erasing its gains against the dollar for the year as investors unwound bets on a rate increase and
British economic data came in worse than expected.
Data published on Thursday showed industrial output inched up by 0.1 percent month-on-month in March, the same pace as in February and slightly below the consensus for growth of 0.2 percent in a Reuters poll of economists.
That confirms the view of a British economy struggling to find momentum during a difficult start to the year.
Almost all analysts and economists expect the BoE to leave rates unchanged when it announces its decision at 1100 GMT.
The pound slipped 0.1 percent to $1.3538 versus the dollar, unchanged from before the data was released.
It fell 0.2 percent to 87.670 pence per euro against a broadly stronger single currency.
RBC chief currency strategist Adam Cole noted that forwards markets still attached a close to 100 percent probability of a rate hike at some point this year.
The language in the BoE’s commentary on Thursday’s decision was likely to signal “that a rate hike at some point this year remains on the table.”
Sterling has tumbled in recent weeks from its post-Brexit vote highs of close to $1.44 to below $1.35, erasing its gains against the dollar for the year as investors unwound bets on a rate increase and
British economic data came in worse than expected.
Data published on Thursday showed industrial output inched up by 0.1 percent month-on-month in March, the same pace as in February and slightly below the consensus for growth of 0.2 percent in a Reuters poll of economists.
That confirms the view of a British economy struggling to find momentum during a difficult start to the year.
Almost all analysts and economists expect the BoE to leave rates unchanged when it announces its decision at 1100 GMT.
The pound slipped 0.1 percent to $1.3538 versus the dollar, unchanged from before the data was released.
It fell 0.2 percent to 87.670 pence per euro against a broadly stronger single currency.
RBC chief currency strategist Adam Cole noted that forwards markets still attached a close to 100 percent probability of a rate hike at some point this year.
The language in the BoE’s commentary on Thursday’s decision was likely to signal “that a rate hike at some point this year remains on the table.”
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