UK pound slips to US$1.39 versus dollarBusiness | 22 Apr 2021 5:18 pm
The UK pound slipped on Thursday, holding below US$1.40 before a European Central Bank meeting, Reuters reports.
After a short squeeze at the start of April, the pound has strengthened against the US dollar in recent weeks - a move which Kenneth Broux, FX strategist at Societe Generale said was driven by U.S. Treasury yields coming down from their recent highs, which prompted the dollar to weaken.
"If U.S. 10-year yields were to test and break 1.50 percent, that would be bullish for the pound, certainly against the dollar," Broux said.
At 0913 GMT, the pound was at US$1.39135 versus the dollar, down by 0.1 percent on the day. Versus the euro, it was down around 0.2 percent at 86.545 pence per euro.
Earlier this week, sterling hit a six-week high against the US dollar after Britain's unemployment rate unexpectedly fell for a second month in a row in the December to February period.