The British pound ascended as investors awaited the Bank of England’s monetary policy decision later in the week, specifically the timing of interest rate hikes.
Sterling climbed to 73.10 pence per euro following it lost 8%. Against the US dollar, the currency closed to $1.5270.
Figures were slightly weaker than projected but it seems like what took place in the rates market, with traders snipping “rate-hike expectations, may have been a bit excessive,” said Valentin Marinov, Head of Group-of-10 Currency Research at Credit Agricole SA’s CIB.
Last week, the pound plunged following reports manufacturing to services implied a deceleration although BOE Governor Mark Carney said market turmoil had not pushed back the likelihood for higher rates.
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