37.8 C
Dubai
Saturday, May 18, 2024
spot_img

Sterling bulls face reality after strong week

Traders who propelled the pound to its strongest week of the year now face uncertainty as they await the next inflation report.

Even if inflation rates exceed expectations, concerns linger that economic strains may hinder the currency’s performance.

Options market pricing indicates a growing readiness to sell, and traders are trimming their most bullish positions in five years.Dollar in for best week in years - eb247 - Economy - UAE Economy -  Emirates24|7

Despite investors rushing to secure higher returns due to accelerating inflation, there are worries that the pound may suffer regardless of the interest rate’s height.

Strong inflation coupled with weaker growth could be detrimental to the currency, as explained by David Adams, head of G10 FX strategy at Morgan Stanley.

Recent UK inflation data has consistently surpassed expectations, leading to speculations of the Bank of England raising rates faster than other developed nations.The Dollar Is a Haven in Sea of Uncertainty - Bloomberg

However, with US inflation falling short of forecasts, pressure mounts for the pound to retreat, evident in currency strategists’ analysis and market positioning.

Next Article

Related Articles

UAE Public Sector Employees Opt for Private Firms for Enhanced Salary and Flexibility.

UAE Employees' Migration Shift from Public to Private: Factors Driving In recent years, there has been a notable trend of employees transitioning from the public...

WOW Resorts Breaks Ground on Landmark JW Marriott Residences Al Marjan Island, Ushering in a New Era of Luxury Living in Ras Al Khaimah

WOW Resorts Breaks Ground on Landmark JW Marriott Residences Al Marjan Island, Ushering in a New Era of Luxury Living in Ras Al Khaimah A...

Saudi Airlines Recognizes Thuraya Travel and Tourism Company as Most Distinguished Performer of 2023

Saudi Airlines Recognizes Thuraya Travel and Tourism Company as Most Distinguished Performer of 2023 The General Corporation of Saudi Arabian Airlines, through its Administrative A­airs...

UAE Teachers Transform Online Learning Amidst Rainy Day.

UAE Teachers Are Making Lessons Fun as Schools Go Online During Rains The onset of the rainy season in the United Arab Emirates (UAE) poses...

UAE Weather Update – Yellow Alert Issued for Fog as Temperatures Begin to Ascend

UAE Weather Update -Yellow Alert for Fog: Navigating Reduced Visibility The issuance of a yellow alert for fog indicates the likelihood of reduced visibility on...

Latest Articles