Share

Pound near highest in a month on Trump trade pullback

London - The pound traded close to the highest level in almost a month after inflation broke through the Bank of England’s target and as investors pared dollar positions amid skepticism about US President Donald Trump’s ability to push through pro-growth policies.

Sterling briefly broke above $1.25 before retreating as the breach triggered so-called stop trades and some banks offered the currency below that level, according to a trader in Europe who spoke in condition of anonymity as the person is not authorized to speak publicly.

It rallied almost 1% on Tuesday as data showed annual inflation in the UK accelerated to 2.3% in February, exceeding the BoE’s 2% goal for the first time since 2013.

The pound traded 0.1% lower at $1.2470 as of 11:40. It rose as much as 0.2% earlier to $1.2507, the strongest level since February 24. The British currency has appreciated 0.7% against the dollar in March.

JPMorgan is looking to exit its “tactical dollar longs” in the next week or two and “rotate away from outright dollar risk by blending our short pound-dollar with a long euro-pound through options” as near-term catalysts for further strength in the US currency are fading, strategists including Paul Meggyesi wrote in a note to clients.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders