Sterling lower against yen after bombing in Manchester; Merkels statement gave euro new momentum

Pound Sterling lower

After German Chancellor Angela Merkel said on Tuesday that the euro was “too weak”, the common currency almost touched its six-month high versus the U.S. dollar. The pound was depreciated by the Japanese yen after a bombing incident at a concert in Manchester that took the lives of at least 19 people.

The blast took place in the English city of Manchester during the performance of singer from United States Ariana Grande, 19 people were confirmed dead and as much as 50 people injured. British police said the incident was being handled as a terrorist attack.

Chancellor Angela Merkel said last Monday that the European currency was too weak because of the monetary policy of the European Central Bank (ECB), specifying that this gave reason for the comparatively soaring trade surplus in Germany. Dollar fell more than 0.2 percent versus the yen at 111.055, following its drop to 110.860, while the euro also lost 0.2 percent to yen at 124.830.

The statement of the German chancellor gave the common currency a new momentum, which has been on a non-bearish status since the presidential election in France earlier this May. Euro was also supported by the positive figures from the euro zone and an expanding spread between the U.S. government and 10-year German bond yields. Euro remained solid at $1.1240 after notching $1.1264 before the session ends.

U.K. pound sterling dropped about 0.45 percent against yen at 144.07; however the currency was stable versus its major opposing currencies. It was slightly adjusted against the dollar at $1.2994. The pound edged down more than 0.3 percent when polls suggested Prime Minister Theresa May is leading over her position before June’s election.


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