The British pound rallied versus the euro and the US dollar Monday following voters rejected lenders’ bailout package, bolstering the currency and hurting the likelihood of Federal Reserve’s interest rate hike.
Sterling stood at 71.005 pence per euro. Against the US dollar, the pound closed at $1.5596.
EUR/GBP has been a popular cross currency during the Greek debt crisis. There are numerous uncertainty on how things will take effect “and a lot of noise about whether there will be any debt relief or not for Greece,” said Chris Turner, Head of Currency Strategy at ING.
This week, the Bank of England will meet. Traders are also preparing for Britain’s budget statement due later this week.
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