LONDON: Sterling sank on Wednesday as profit-taking by traders after a strong first quarter for the British currency pulled it to its lowest in over four weeks against the euro and a week’s low against the dollar.
The pound fell on Tuesday, losing 0.6% against the dollar and over 1% against the euro - its worst day against the single currency in five weeks as investors took cash off the table. By 1415 GMT on Wednesday, the pound was down 0.5% against the dollar at 1.3756, having hit a one-week low of $1.3728.
Against the euro, it traded 0.7% lower to the euro at 86.50 pence, having hit a five-week low of 86.62 pence.
“The recent FX price action seems to suggest that many positives are in the price of the GBP by now and that the pound is looking quite overbought (especially in the case of EUR/GBP),” said Valentin Marinov, head of G10 FX research at Credit Agricole.