LONDON, April 21 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
(Reporting by London Markets team)