Sterling Mired Prior Quarterly Inflation Report

Tuesday, May 13, 2014 22:18 pm

Strengthening of  sterling  which reached its highest level in 16 months against  the euro  stalled on Tuesday and  sterling  also weakened against the dollar, hit by reduced bets from investors to further gains ahead of the  inflation  the Bank of England  and the data that will be released on Wednesday.

Dealers and analysts said that they saw many of the players are away from regular sterling ahead of the central bank's inflation report, which was released after the employment report on Wednesday.

Both of these reports provide a potentially powerful signal at a time estimated increase in UK interest rates, which some analysts say could happen at the end of 2014 compared to the beginning of next year.

But many analysts, who are not convinced by this view.

" It's  seen as a story for the pound on Tuesday, where people adjust positions ahead of data on Wednesday, "said Paul Robson, an analyst at RBS in London . 

"Estimates for hawkish signals from the BOE has reached its peak. Currently we started less confident. "

Sterling fell by 0.2% on the day to $ 1.6837, down from near the highest level in five years at $ 1.6997 were achieved last week. Against the euro, the pound has recovered from earlier weakness after poor data from Germany, but still traded in the low range at 0.8140.

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Alexander Ronald

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