Sterling climbs to highest since August with Fed, ECB cuts weighing

LONDON: Sterling rose on Friday against a weakening euro and dollar after signs that the European Central Bank (ECB) and the US Federal Reserve might be closer to cutting interest rates than the Bank of England (BoE).

The pound rose 0.18% to $1.2826, after hitting its highest since August against a weakening dollar. It was set for its sharpest weekly jump against the greenback since November, up 1.4% this week. Against the euro, sterling rose 0.35% to 85.17 pence, after jumping to a more than three week high. It was on track for its biggest weekly rise against the single currency since early January, up 0.5%. Analysts said sterling’s firmness this week was less a product of the UK fiscal outlook and more related to pressure on the dollar and euro after Fed Chair Jerome Powell sounded more confident about cutting interest rates in coming months, while the ECB’s governing council had begun to discuss a suitable timeline for monetary policy easing.