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Investors remain negative on sterling despite hitting 1-year high against the dollar
Expectations that the Bank of England will take a more hawkish stance at its policy meeting this week have lifted sterling from two-month lows ploughed at the end of August, offsetting concerns about a slowing economy and a lack of progress in the Brexit negotiations. Stronger-than-expected inflation data on Tuesday fuelled those expectations as UK consumer prices rose by an annual rate of 2.9% in August, just shy of the BoE’s upper limit of 3%, at which point the Governor Mark Carney would be required to write a letter to the UK finance minister explaining the overshoot. The pound hit a one-year high of $1.3328 ... (full story)