Pound Rallies From 5 1/2-Year Low as Markets Shake China Turmoil
- BOE meeting to be highlight in busy week for U.K. data
- Forward markets not pricing in increase to bank rate this year
This article is for subscribers only.
The pound recovered from a 5 1/2-year low against the dollar and its weakest level in 11 months versus the euro as the effects of China’s economic turmoil faded.
A faltering domestic and global economy and concern Britain is headed for the European Union exit door has seen sterling fall against seven of its Group-of-10 counterparts this year. Waning prospects for an interest-rate increase by the Bank of England also weighed on the pound, before the relief rally. Sterling pared its gains later in the afternoon as European stocks erased an advance.