London Daily

Focus on the big picture.

Sterling hovers just below 10-month high, with focus on U.S. job numbers

Sterling hovers just below 10-month high, with focus on U.S. job numbers

The pound hovered just below its highest level in 10 months on Thursday as investor focus turned to Friday's U.S. jobs numbers.

Sterling was last flat at $1.246, having touched its highest level since June - $1.253 - on Tuesday.

Markets were subdued across the board on Thursday ahead of the release of the U.S. non-farm payrolls employment data on Friday.

It will be a key factor in the Federal Reserve's next interest rate decision and could cause volatility in markets.

"There is a semblance of calm about today's trading session in the absence of any major data," said Simon Harvey, head of FX analysis at Monex Europe.

"Price action instead is likely to be determined by expectations for tomorrow's payrolls print."

The U.S. jobs market has remained resolutely strong, keeping the pressure on the Fed to raise interest rates to tackle inflation. Yet analysts expect the U.S. to have added 239,000 jobs in March, a slowdown from February's 311,00 figure.

The pound was also little changed against the euro , with a euro changing hands for 87.51 pence.

Sterling has risen dramatically after plunging to a record low of $1.033 in September in the wake of then-Prime Minister Liz Truss's disastrous budget.

Pound vs. USD

A stronger-than-expected economy, aided by falling energy prices, has helped the pound. As has a recent drop in the dollar as investors worry about the collapse of Silicon Valley Bank and Signature Bank and the implications for the U.S. economy.

With British inflation unexpectedly jumping to 10.4% in February, investors broadly think the Bank of England will raise interest rates further. They're less sure about the Fed.

Expectations of higher interest rates have helped the pound, by making sterling-denominated fixed income investments in Britain look relatively more attractive.

In a thin calendar, data from Halifax showed that British house prices rose for a third month in a row in March. However, separate figures showed that house-building in Britain fell at the sharpest pace since May 2020 last month.

The dollar index, which tracks the currency against six peers, was last up 0.07% at 101.94. It stood at a three-month high of 105.88 in early March.

Newsletter

Related Articles

London Daily
0:00
0:00
Close
World Court Orders Immediate Halt to Israeli Offensive in Gaza
Understanding FLiRT COVID Variants and Their Impact
Baltic NATO Members to Construct 'Drone Wall'
Global Life Expectancy Dropped By 2 Years Due To COVID-19
Macron Halts New Caledonia Voting Reform After Riots
Rishi Sunak Shelves Rwanda and Smoking Policies Ahead of Election
US Refuses World Court Jurisdiction
China Conducts Surprise Military Drills Around Taiwan
Grim Polls Predict Major Loss for PM Rishi Sunak
Rishi Sunak's Campaign for UK Election: Key Issues Highlighted
German Property Crisis Worsens as Foreign Investment Declines
Princess of Wales's Taskforce Calls for Business Investment in Early Childhood
Campaign Groups Condemn UK Report on Protests
Former Royal Marine Charged with Espionage Found Dead
Australian PM Calls for Julian Assange's Freedom
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Julian Assange Granted Right to Challenge US Extradition
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Ireland's Homeless Gain Voting Rights
Blinken orders crackdown on Israel-Hamas leaks
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
What Happens If an Iranian President Dies in Office?
Spain Recalls Ambassador After Argentina President's Remarks
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Rwanda Denies Entry to Human Rights Researcher
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
New Dutch Government Drives Wedge Through EU Liberals
Iranian President Raisi Missing After Helicopter Goes Down
Freemasons and ‘Global War Party’ Accused of Conspiring Against Georgia
Poland Supports Rolls-Royce's Nuclear Power Plant Initiative
European Ports Overflow with Unsold Electric Vehicles
Esprit Files for Bankruptcy in Europe, Putting Hundreds of Jobs at Risk
Chevron Halts North Sea Drilling Amid Rising Tax Burden
Jeremy Hunt Accused of Exaggerating Conservatives' Economic Record
Victoria Atkins Discusses Historical Gender Bias in the NHS
Dublin and Monaghan Bombings 50th Anniversary: Calls for Justice
Rishi Sunak and Akshata Murty’s Wealth Rises to £651 Million
New Caledonia Riots Escalate After French Voting Rights Change
Renters Face Fierce Competition as Listing Times Shrink
Surge in Fake Science: 19 journals shut down due to fraudulent papers from 'paper mills'
Global Birthrates Decline, Raising Economic and Social Concerns
Boeing Faces Possible Prosecution Over 737 MAX Settlement Violation
Prisoner Escapes in France as Two Officers Killed in Van Ambush
German Court Rules AfD Can Be Monitored for Extremism
Jacob Rees-Mogg Criticizes Bank of England’s Inflation Strategy
×