Caution grows after sterling climbs to four-month high

From Reuters - January 12, 2018

* Graphic: sterling and gilt yields

* Graphic: World FX rates in 2017

* Graphic: Trade-weighted sterling since Brexit vote

LONDON, Jan 12 (Reuters) - Sterling rose more than half a percent to hit a four-month high against the dollar on Friday as investors dumped the greenback against a range of peers following strong euro gains but the pound lost ground against the single currency.

A swathe of weak data this week including a widening trade deficit and lacklustre Christmas trading results from top British retailers including Tesco has left investors wary about the longer term outlook.

Sterling is benefiting from the dollar weakness and the growing euro strength rather any pound-specific factors which if anything have been underwhelming this week, said Alvin Tan, an FX strategist at Societe Generale in London.


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