Pound Marches to Six-Week High With Dollar on the Defensive

  • Buoyant sterling helps euro recover losses versus greenback
  • U.S. yields move higher, disconnect from dollar spot action

How Is Brexit Moving the British Pound?

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The pound rose to a six-week high as a combination of short-squaring and dollar weakness across the board kept the currency’s recent bullish tone intact.

The U.K. currency burst through stops during the London morning, and climbed to as high as $1.2598, the highest since Dec. 14. That move prompted short-term investors to take profit on their longs, with an abundance of offers within the $1.2600 to $1.2650 range, three traders in London and Europe said. Short-term risk reversals that show bearish bets on the currency have eased lately, tracking spot price action higher.