LONDON, Jan 26 (Reuters) - Sterling rose against the dollar and the euro on Wednesday, while gilt futures fell after the minutes from the January meeting of the Bank of England’s Monetary Policy Committee showed poliymakers considered a rate rise.
The minutes also showed Bank of England policymaker Martin Weale unexpectedly joined Andrew Sentance in voting for a quarter-point rate rise this month.
Against the dollar GBP=D4, sterling rose to a session high of $1.5874 before paring most those gains to trade at $1.5832. The euro also fell to a session low against the pound, dropping to 86.395 pence EURGBP=D4.
The March gilt future FLGH1 fell more than 20 ticks to a session low of 117.09, having stood at 117.31 before the release.
Short sterling futures <0#FSS:> tumbled as much as 9 ticks across the strip, reversing gains made in the wake of Tuesday’s shock contraction in fourth-quarter UK GDP.
Britain's FTSE 100 .FTSE showed little reaction to the MPC minutes, up 0.9 percent at 5,972.95.
Reporting by London Markets team