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Sterling holds ground ahead of business investment data

Written by Business World, on 25th May 2017. Posted in World

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Britain's pound inched back towards $1.30 but struggled to fend off the euro's latest advances on Thursday, ahead of business investment data and an updated reading of the economy's first-quarter performance.

Recent weeks have brought signs that parts of the British economy are wilting, and revised and more detailed Q1 GDP figures due at 0830 GMT are expected to confirm growth slipped to 0.3% quarter-on-quarter from 0.7% in Q4.

The business investment numbers are forecast to see a modest 0.2% bounce, meanwhile, and will feed discussions on whether the start to negotiations over Britain's departure from the European Union will dent domestic firms' confidence.

Ahead of the figures, the pound ticked up to $1.2983 as the dollar sagged again following signals from the U.S. Federal Reserve on Wednesday that it was in no rush to ramp up interest rates.

"We do start to wonder whether we are getting a bit stretched in terms of that (pound rise versus the dollar)," said TD Securities head of global research Richard Kelly.

"We think the market is underpriced on the Fed side and I think we might have gone a bit far, a bit fast."

Sterling slipped slightly against the euro to 86.56 pence per euro to leave it hovering just above a two-month low hit earlier in the week. It has fallen roughly 4% over the last month.

Campaigning for Britain's June 8 election is set to resume on Friday, after being suspended due to Monday's suicide bomb attack in Manchester which killed 22 people. (Reuters)

Source: www.businessworld.ie

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