British pound drops on weak prospect

- The British pound lost ground on Friday after central bank president Carney dampened expectations about the British economy.

Carney said that although rising interest rates are 'likely' in the coming years, less good economic data would have given the Bank of England concerns. The currency dropped by 0.2% against the dollar, the most important currency pair, to $ 1.4055.

The Brexit negotiations provide the biggest macroeconomic change. Only when there is a deal does Carney want to rule on it to get the economy on a 'stable path'.

The decline of the pound sterling against the dollar and the euro meant that British products became cheaper; that effect put the FTSE 100 companies on average higher.

In two trading sessions in a row, the pound declined 1.1% to $ 1.4055. According to ING's currency expert Viraj Patel 'it seems that sterling bulls have pressed the panic button'.

The dollar index posted 0.2% gains, the euro lost 0.3% against the dollar at $ 1.2305.

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