GBP Headed For Weekly Gain on Prospect of Tighter Monetary Policy

The pound was set for a weekly advance against the dollar as the prospect of tighter monetary policy in the U.K. combined with pared bets for U.S. rate rises.

Sterling, which touched a one-week high on Friday, has stayed relatively well supported in the face of U.K. economic data missing forecasts and uncertainty related to Brexit. That comes after some Bank of England policy makers called for a move away from stimulus and higher interest rates. The British currency climbed versus a broadly weaker dollar, as U.S. headline inflation data due on Friday is seen slowing, and after Federal Reserve Chair Janet Yellen signaled on Wednesday the central bank won’t rush to tighten monetary policy.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.