# Battered sterling gets respite but set for weekly fall vs dollar
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-13
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: GBP Gains Respite Against USD Amid Economic Concerns
Meta Description: Despite recent lows, the pound sees slight gains against the dollar, but with Brexit woes ongoing, the future remains uncertain for the UK currency.
URL: https://financedigest.com/battered-sterling-gets-respite-but-set-for-weekly-fall-vs-dollarhtml

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By Lucy Raitano

LONDON (Reuters) – Britain’s pound edged up against the dollar on Friday, offering some respite from a week of selling that pushed the currency to two-year lows.

By 0835 GMT, the pound was up 0.21% at $1.2216, a day after falling to a fresh two-year low of $1.2165 as a slew of data pointed to a weakening British economy.

Kenneth Broux, European currency strategist at Societe Generale, said that while sterling was enjoying a respite, he wouldn’t read too much into any currency gains.

We’ve had quite bad GDP data from March, and the stagflationary backdrop for the UK is not really great, then you’ve got tension boiling over in Northern [Ireland over the Protocol,”](https://www.financedigest.com/first-year-of-n-ireland-protocol-required-1-million-customs-declarations.html "First year of N.Ireland protocol required 1 million customs declarations") he said,

Senior [British politicians want to overhaul the agreement on trade between Northern Ireland and the United Kingdom that they signed up to in order to get Brexit](https://www.financedigest.com/what-brexit-mean-for-british-buyers-in-spain.html "WHAT BREXIT MEAN FOR BRITISH BUYERS IN SPAIN") done. They have warned they might have to take unilateral action.

Data on Thursday showed Britain’s economy unexpectedly shrank 0.1% in March after a slump in [car sales due to supply-chain problems](https://www.financedigest.com/4-things-to-do-if-you-run-into-problems-with-your-leased-car.html "4 Things to Do if You Run Into Problems With Your Leased Car").

That has exacerbated concerns about a weakening growth outlook that could slow the [Bank of England’s](https://www.financedigest.com/bank-of-england-set-to-hike-to-4-as-rate-peak-looms.html "Bank of England set to hike to 4% as rate peak looms") rate-hiking cycle and battered the pound.

While sterling is up against the [dollar for the first time in over a week](https://www.financedigest.com/dollar-dips-ahead-of-inflation-data-later-this-week.html "Dollar dips ahead of inflation data later this week"), the currency was heading for a fourth straight week of falls.

The way [ahead looks likely to remain](https://www.financedigest.com/swiss-watchmakers-remain-upbeat-ahead-of-geneva-gathering.html "Swiss watchmakers remain upbeat ahead of Geneva gathering") very uneven for the pound,” ING currency strategists said in a note.

And [sterling was lower against the euro](https://www.financedigest.com/dollar-outshines-euro-sterling-amid-european-bank-jitters.html "Dollar outshines euro, sterling amid European bank jitters"), down almost a fifth of a percent at 85.24 pence.

(Reporting by Lucy Raitano; Editing by Dhara Ranasinghe and Emelia Sithole-Matarise)


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