Market News
Pound at 10-week low against dollar after US-EU trade deal - REUTERS
By Lucy Raitano
LONDON, July 29 (Reuters) - The pound fell to a 10-week low against a stronger dollar on Tuesday, while staying just off a two-year low against the euro, as markets continue to digest the announcement of the trade deal between the European Union and the United States.
The pound was last a touch higher against the dollar at $1.33570, but had earlier fallen to $1.3316, its lowest level since May 23.
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The dollar was broadly stronger on Tuesday, continuing a rally after Sunday's news that the United States and the EU struck a framework trade pact, the latest in a flurry of deals to avert a global trade war. Investors are also looking ahead to a U.S. Federal Reserve and Bank of Japan meeting this week.
The euro slid 0.1% against the pound to 86.71 pence, coming off a two-year high of 87.44 hit on Monday when the euro fell 0.78% against sterling , its largest one-day drop since mid-April.
"That reflected positioning," said Chris Turner, global head of markets at ING, of Monday's fall in euro/sterling.
