Brexit vote: Sterling on track for a second week in a row


Trade-weighted Sterling: Trade spectra since Brexit vote http: TMSNRRT.Rs 2 HwV 9 Hv

LONDON, Aug 13 - Sterling helped to weaken against the dollar on Friday as the greenback recovered following a weak reading of consumer sentiment, but the British currency was still on track for a second week of declines.

Since 12 Aug, the pound is the third best-performing G 10 currency, trailing the Canadian dollar and the U.S. currency.

Recent moves have been attributed primarily to shifts in risk sentiment and moves in the dollar, although sterling has outperformed as COVID 19 cases have fallen and high vaccination rates allowed the British government to lift most restrictions.

Thursday's GDP figures added to expectations and came in line with signs Britain's economy is on the path to recovery. However, with the data not surprising to the upside or materially disappointing to investors sold the news.

On Friday, the pound dropped to its lowest levels since July 27, down 0.15% against the dollar at 0838 GMT to $1.3790. In London, it was 0.34% higher as the morning traded at $1.3857. That set it on track for a 0.1% decline during the week.

The recovery in the pound came as the dollar fell following disappointing numbers from the University of Michigan Consumer Survey, said David Madden, market analyst at Equiti Capital in London.

The lows of today's session were the lowest level in about 10 days. It's probably quite lucky for the pound that the U.S. had disappointing numbers.

Against the euro, it is trading 0.2% lower with a week's lowest of 85.12 pence.