Sterling fails to hold onto gains after US inflation data

* There will be no report on the British pound market on Monday May 31st due to a UK public holiday

* Chart: World exchange rates in 2020 tmsnrt.rs/2egbfVh

* Chart: British pound trade-weighted since the Brexit vote tmsnrt.rs/2hwV9Hv (Updates thoroughly)

LONDON, May 28 (Reuters) – The pound fell against the strengthening dollar on Friday after data showed US consumer prices jumped in April, confirming the strength of the economic recovery in the States -United.

The pound was unable to hold up Thursday’s gains when the Bank of England commented on the timing of the rate hikes.

It fell 0.4% against the dollar to $ 1.4137 during early Friday afternoon trading. As of 3:20 p.m. GMT, it was down 0.2% to $ 1.4177.

But he was still on track for his fourth straight week of gains against a strong greenback.

Shaun Osborne, chief currency strategist at Scotiabank, said the general tone of the dollar “would determine GBP action to close the week before Monday’s public holiday.”

Against a basket of currencies, the dollar is on track for its best week since late April.

Against the euro, the pound fell 0.1% to 85.95 pence, and was set for its fifth consecutive weekly rise against the single currency.

Analysts said uncertainty over a possible delay in June’s UK reopenings weighed on the pound this week as well.

In the long term, Scotiabank expects the pound to hit a new three-year high of $ 1.43, Osborne said.

Sterling found support this week in comments from BoE policymaker Gertjan Vlieghe, “which were interpreted as hawkish in tone,” said Jane Foley, head of foreign exchange strategy at Rabobank.

Vlieghe said on Thursday that the central bank would likely not hike rates until well into the next year, while noting that an increase could come sooner in 2022 if the economy rebounds faster than expected.

Britain began the third stage of its reopening last week, allowing indoor dining in pubs and restaurants. Economic indicators, including retail sales, purchasing manager surveys and employment measures, are improving.

But the BoE’s chief economist Andy Haldane warned on Friday that it is possible that the cost pressures facing UK businesses could lead to high prices and wage inflation spirals.

Reporting by Joice Alves; Edited by Barbara Lewis, Alexander Smith and Andrew Heavens

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.


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