Sterling gains on release of BofE minutes

Story link: Sterling gains on release of BofE minutes

Sterling gained 0.5 percent on the euro on Wednesday, to £0.6790, to reach its highest level against the shared currency since before the London bombings on July 7.

The gain was due largely to reaction to the release of the Bank of England’s monetary policy committee report that showed a close vote on this month’s interest rate cut.

Sterling was flat in relation to the US dollar, at 1.8098, after early losses.

Meanwhile, the US dollar was stronger after reports were released showing a 1 percent increase in wholesale price inflation in July, with an 0.4 percent jump in core wholesale price inflation. After Tuesday’s reports showing consumer price inflation not up nearly as much, it was clear that producers had not yet begun to pass on their price increases to consumers.

The US dollar was up 0.4 percent to $1.2295 in relation to the euro and it gained 0.9 percent to C$1.2086 versus the Canadian dollar.

The yen was up slightly in relation to the US dollar, to ¥109.51 after early losses.

The Swiss franc gained on the euro but fell in relation to the US dollar on reports that interest rates will likely go up soon on the basis of a strong outlook for the Swiss economy. The Swiss franc was up 0.1 percent to SFr1.5488, but lost 0.3 percent to the dollar.