Article by ForexTime
Sterling has held above the key $1.6300 level against the dollar and has held steady after a strong rally from September 10 low of $1.6050.
the pound had a big tumble last week in the buildup to the Scottish referendum but has since recovered as markets look to monetary policy in Britain.
The British currency got an added boost on Thursday when BoE Governor Mark Carney said that a rise in interest rates was “getting closer”.
Carney said strong growth and rapid job creation meant the judgment about when to start raising rates from a record low of 0.5 percent had become “more balanced”.
“Relative to the recent past, the economic outlook is much improved,” he said at a conference in Wales on Thursday. “While there is always uncertainty about the future, you can expect interest rates to begin to increase.”
Free Reports:
The pound is on course for its second straight week of gains against the euro, trading close to 26-month highs, as speculation grows that the Bank of England will hike interest rates soon. This diverging monetary policy between the BoE and ECB is pushing the pound higher versus the euro.
The euro traded at 78.12 pence on Friday, near its low of 77.855 struck on Thursday. Against the greenback, pound was steady at $1.6321 today.
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