Sterling headed for its first weekly gain since February and gilts declined as market expectations shifted toward tighter policy in the U.K.
The pound has been prone to large swings this week, often without obvious catalysts, a trend that continued on Friday as it earlier slid 25 pips within a minute against the dollar. That was mainly driven by corporate demand for the U.S. currency and algo buying across the board, according to two Europe-based traders who asked not to be named as they were not authorized to speak publicly.
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