The sterling has swung wildly between $1.30 and $1.33 in chaotic trading over the last 48 hours.
Category: Features
The euro dipped below $1.13 on Thursday after the European Central Bank postponed the timing of its first post-crisis rate hike to 2020 at the earliest. ECB also launched a new round of cheap loans to banks.
The OECD cut forecasts again for the global economy in 2019 and 2020, further to previous November downgrades. There were warnings that trade disputes and uncertainty over Brexit would hit world trade and businesses.
Sterling has dropped this week, reversing some of last week’s surge. Traders book profits and investors turn nervous again about the sort of divorce Britain and the European Union will have.
Sterling extended gains on Monday on signs some pro-Brexit lawmakers were increasingly willing to compromise with Prime Minister. The dollar edged higher against its rivals on Monday on the back of widening weakness in the euro.