Sterling falters as ECB keeps rates steady and raises forecast on growth

Pound Sterling falters

London’s chip currency, Sterling, continued its struggles in the market as it dived deeply on Thursday session after the European Central Bank left its interest rates unchanged and showed more optimism on the euro zone economic growth.

More Burdens

Sterling finished off 0.4% lower against the euro to touch it lowest settlement since January at 1.147 and gave up 0.1% versus the US dollar to close at 1.213 per greenback. The pullback on Thursday marked the ninth loss of the currency in ten trading days.

Aside from the ongoing Brexit process that has been the ultimate source of the British pound’s volatility, more burdens were added to the sterling as the ECB has decided to kept its key interest rates unchanged, which forced investors to do more euro-buying.

Furthermore, it remained optimistic about the economic growth in euro zone, saying that further steps to spur growth and push up inflation are not needed, at least for now.

Central bank’s President Mario Draghi confirmed that the ECB will retain its aggressive stimulus policy until the end of the year, signaling that a “sense of urgency” to pump up improvement can be off the table.

It has been a tough first quarter for the sterling as the currency has been the target of geopolitical turmoil across Europe and the scorching economy in US, with the dollar bouncing back from its previous losses.


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