Financial Markets Review

Sterling strengthened by 5.4% against the US dollar and by 5.6% against the euro on perceptions that the pound has been oversold ahead of next week’s BoE meeting.

 

Sterling strengthens ahead of BoE rate decision

 

Sterling strengthened by 5.4% against the US dollar and by 5.6% against the euro on perceptions that the pound has been oversold ahead of next week’s BoE meeting.

 

€/$ fell to 1.2795 at Friday’s close after reaching a high of 1.3329 on Tuesday, in a knee-jerk reaction to the better than expected German IFO survey.

 

The Russian rouble extended its losses as speculators tested the central bank’s new target floor of 36 against the dollar.

 

US treasury yields rose sharply on fears over the size of upcoming government paper issuance. UK 3-month libor stabilised at 2.17%.
 

 

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