Sterling up as dlr pressured before U.S.jobs data
Sterling inched up to a one-week high against the dollar on Friday as the U.S. currency came under selling pressure on speculation that a crucial reading of U.S. employment may come in weaker than expected.
The pound also held above a record low hit against the euro earlier in the week, but analysts said the British currency's downward trend would stay intact, given the view that the Bank of England may cut interest rates next week.
"There's still enough reason to sell sterling, so we could see an upward drift in euro/sterling," said Steve Barrow,chief currency strategist at Bear Stearns.
Sterling rose 0.3 percent to $2.0015 at 0753 GMT, its highest level since last Friday.
The euro was barely moved against sterling at 78.50 pence, off a record high 79.82 pence hit on Monday.
Median forecasts are for a drop of 60,000 U.S. non-farm payrolls in March, after a 63,000 slide in February, which would suggest that the employment market is continuing to suffer as economic growth slows.
A weak payrolls figure would be expected to put the dollar under more selling pressure, as it would be seen bolstering expectations for an aggressive interest rate cut by the Federal Reserve later in the month. The data is due at 1230 GMT.
Some analysts said that sterling has won a reprieve this week after a recent sell-off, due to some views that the Bank of England may put off cutting rates from 5.25 percent until next month.
But a Reuters survey released on Thursday showed that 48 out of 63 economists expect the Monetary Policy Committee will cut rates by 25 basis points by 5.0 percent next week, compared with just 22 of 56 in a similar poll last month.
Sourced by Reuters.