LONDON: Sterling held steady on Friday, set for its fourth month in a row of gains against the dollar, as recent favourable economic data support Britain’s currency just as worries over US tariffs and high debt weigh on the greenback.
“Sterling looks well supported,” said Kit Juckes, chief FX strategist at Societe Generale, pointing to “reasonably good” data trends.
Sterling was last trading at $1.3472, little changed on the day and down around 0.5% on the week after gaining about 2% last week.
That leaves the pound set to end May with a gain of around 1%, which would mark a fourth straight month of increases against a weakened greenback.
It last recorded four consecutive monthly gains against the dollar in 2022.
The dollar, meanwhile, was en route to its fifth-straight monthly decline on Friday, as further uncertainty around trade policy and US fiscal health weighed.
Sterling rose around 0.25% to 84.06 pence per euro.
Still, it was set for its first week of declines after six weeks of increases as gains seen after UK retail sales and inflation numbers last week and optimism around Britain’s trade deals with the US and India faded.
Last week’s stronger than expected UK inflation print caused markets to do away with bets for a rate cut at the Bank of England’s policy meeting in June, with about 97% of traders now anticipating that the central bank will hold rates after a cut by 0.25 percentage points to 4.25% in May.
