British pound sterling rises after touching near eight-month lows against the euro

British pound

Monday, the British pound sterling rose up after touching a near eight-month low against the euro. On Friday, sterling lost about 2.5% against the euro, which is considered as the currency’s worst week since October and its weakest since early November of the previous year. The British pound sterling has been struggling last week as European Central Bank’s chief: Mario Draghi claimed possible changes to the central bank’s expansive motivation program would be talked upon in the autumn this year.

The British pound sterling advances against the euro by 0.6% to 89.24 pence per euro.

The pound’s ascension was boosted by investors taking profit on gains for the single currency and as ministers negotiates a transitional deal to ease the country’s exit from the European Union. In the recent weeks, sterling has been gaining support with the expectation that like the ECB, Bank of England will also raise interest rates in the coming months; however BoE’s policy makers have claimed that any monetary policy tightening would be data-implemented.

In accordance to this, the British economy’s weak figures which were forecasted last week, made the fed hesitate and doubt that the Bank of England was about to raise rates, and the IMF on Monday cut its forecast for growth this 2017, which showcases weakness in the first quarter of 2017.

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