BusinessReutersSterling shrugs off local election to focus on US payrolls data
Sterling rose on Friday against a weakening dollar ahead of U.S. jobs data due later in the day, while local elections in Britain have left the currency undisturbed. Markets are focusing on U.S. nonfarm payrolls data due at 1230 GMT for clues on when the Federal Reserve might cut rates after Fed Chair Jerome Powell told reporters this week that interest rates might have to remain elevated for longer but shot down talk of raising them again. In Britain, the opposition Labour Party won a parliamentary seat in Blackpool South and control of several councils, inflicting heavy losses on the governing Conservatives.
BusinessReutersSterling gives back some Fed-inspired gains, eyes on local elections
The British pound slipped against the dollar, having risen the day before after the Federal Reserve's policy meeting, while investors were playing down the impact UK local elections on Thursday might have on the currency. The pound was last down 0.1% against the dollar at $1.2509, having risen 0.3% the day before after Fed Chair Jerome Powell ruled out hiking interest rates, which weighed on the U.S. dollar. "The Fed will be data dependent and if data were to show another boost to inflation then you can't completely rule out another rate hike," said Jane Foley, head of forex strategy at Rabobank.
BusinessReutersYen higher after suspected intervention
The yen gained on Thursday, following a sudden rally late on Wednesday that traders and analysts attributed to intervention by Japanese authorities, while the dollar was broadly lower before key jobs data on Friday. The sharp move in the yen on Wednesday came in a quiet period for markets after Wall Street had closed, and hours after the U.S. Federal Reserve had wrapped up its policy meeting. Fed Chair Jerome Powell confirmed the central bank's expectation to cut rates, but acknowledged such a move would come later than expected due to stubbornly high inflation.
