Pound drops versus dollar on upbeat US data

Currencies Direct May 28th 2014 - < 1 minute read

Sterling was down more than 0.5 per cent against the dollar on
Wednesday (May 28th) after upbeat US data lent support to the
greenback.

GBP/USD slumped to 1.6767, a whole cent below Tuesday’s peak, as
the dollar advanced on positive housing, consumer confidence and
wholesale pricing figures from the US.

Improving economic data fuels expectations the Federal Reserve will be
able to wind up stimulus by the end of the year.

The outlook saw the dollar index, which measures the greenback
against a basket of currencies, climb to an eight-week high.

USD/JPY was within sight of a two-week high as the
exchange rate
rose to 101.94.

Sterling was also lower against the euro, with EUR/GBP rising
from a 17-month low to trade at 0.8125, the strongest level for the
single currency in a week.

Against the dollar, the euro was near a three-month trough of
1.3612 hit on Tuesday as EUR/USD held steady at 1.3625.

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