Sterling fell to a 10-day low against a strengthening euro, with investors staying focused on the respective future monetary policy paths of the Bank of England and other major central banks. BoE Monetary Policy Committee member Catherine Mann will speak in London at 1300 GMT, while other central bank speakers are gathered in Washington for the International Monetary Fund (IMF) and World Bank meetings.
The pound was down 0.7% at 83.63 pence per euro, its lowest since April 11. “MPC members have sounded dovish on interest rates in recent weeks,” Enrique Diaz Alvarez, chief risk officer at Ebury, said. However, “the blowout inflation report for March, and a near certainty that the April print will be even higher, suggests that the bank won’t be able to hold the line for much longer.
The Bank of England last month softened its language on the need for more interest rate increases while stressing downside risks to the economy. Last…
