FX round-up: Spot dollar ends week at three-month high
The pound continued to gain ground against the euro on Friday despite what appeared to be somewhat more dovish remarks from the Governor of the Bank of England to the Lincolnshire Echo.
That followed recent more hawkish remarks from both himself and fellow MPC member David Miles which have seen Gilts underperform over recent days.
"We are not on any pre-determined plan but as slack is used up in the labour market and the economy continues to grow it will be appropriate to make modest and reasonable adjustments in interest rates so that inflation stays around that target," Carney told the Lincolnshire Echo.
Euro/sterling ended the session down by 0.43% to 0.6940, while cable was flat at 1.5605.
The single currency also lost ground vis-a-vis the Greenback, sliding by another 0.44% to 1.0829.
That comes as some analysts, namely those at Morgan Stanley, pointed out the potential for further gains by the dollar given that rates hikes by the Federal Reserve are not yet priced into the US Treasury market.
As of Friday's close Fed funds futures were placing a 33% probability on a September hike by the US Fed and 70% on a hike arriving in December.
The Bloomberg Dollar Spot Index advanced for a fourth week, adding 1.6% to 1,208.00 - a three-month high. Speculative long positions on the US dollar were at a five-week high according to the latest CFTC data available.
The latest US consumer price figures release on Friday revealed the slightest of increases in CPI to a 0.1% year-on-year rate, from 0% in May. At the core level CPI was moved up to a 1.8% clip year-on-year from 1.7%, as expected.