The British pound touched its highest versus the US dollar in more than a week Thursday, following weaker than anticipated US economic data radiated doubt on likelihood of this year’s Federal Reserve interest rate hike.
US housing starts climbed less than projected in March and permits posted their largest decline since last May.
Sterling gained 0.3% at $1.4886, falling to a five-year low of $1.4567 at the beginning of the week. Against the euro, the pound added 0.2% at 71.84 British pence.
Euro/US dollar is somewhat all over the place… therefore having “a consequence on many of the crosses,” said Jane Foley, Senior FX Strategist at Rabobank.
Foley added political before the United Kingdom’s May general election also affect the currency negatively.
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