Sterling slips, gilts extend gains on BoE Weale comments

LONDON, April 21 Thu Apr 21, 2011 9:53am EDT

LONDON, April 21 (Reuters) - Sterling slipped back against the dollar and gilts extended gains on Thursday after dovish comments from Bank of England policymaker Martin Weale, who has voted for higher interest rates since January.

Sterling GBP=D4 fell around 40 pips to trade at $1.6530, up around 0.8 percent on the day. It had earlier risen to a 16-month high at $1.6600 on the back of a weak dollar and better-than-epected UK retail sales.

June gilt futures FLGM1 rose to stand 37 ticks up on the day at 118.58 having been 32 ticks higher beforehand. Short sterling futures <0#FSS:> also ticked higher across the strip.

Britain's recovery in the first quarter has been disappointing, Weale said on Thursday, adding that the BoE's forecasts in May could be crucial to his next vote on interest rates. [ID:nL9E7FB002]

(Reporting by London Markets team)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.