The pound sterling rose to its highest level in more than two months against the dollar, although some risk aversion limited the losses of the US currency, with traders awaiting new economic signals next week, to determine the course of monetary policy regarding interest rates in the future, according to the Investing.
The current week is full of events such as the postponed OPEC+ meeting, the release of data from the Federal Reserve’s preferred inflation indicator (the US central bank), as well as inflation readings in the euro zone and Australia, the Reserve Bank of New Zealand’s decision on interest rates, and the release of Chinese Purchasing Managers’ Index data.
The pound sterling rose to its highest level in more than two months, to $1.2620, continuing last week's gains, after data showed that British companies unexpectedly announced a marginal return to growth in November, after three months of contraction.
Carol Kong, a currency expert at the Commonwealth Bank of Australia, said: “This indicates the strength of the British economy, despite the Bank of England tightening monetary policy very strictly ... but we still expect the British economy to weaken and suffer from a short-term recession.”
The British pound is heading towards achieving gains of about 3.8% during the month, which is its largest monthly increase in a year.
Regarding other currencies, the dollar fell 0.32% to 148.97 yen, while the euro rose 0.2%, to 1.0952 dollars.
The dollar index fell 0.12% to 103.31 points, and is heading towards a monthly loss of more than 3%, recording its worst performance in a year.
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