LONDON, Jan 5 (Reuters) - The pound eased against the dollar on Monday, as the greenback headed for a fifth daily rise in a row against a basket of major currencies ahead of a wave of economic data
Sterling Weakens as Traders Await Key Economic Data
LONDON, Jan 5 (Reuters) - The pound eased against the dollar on Monday, as the greenback headed for a fifth daily rise in a row against a basket of major currencies ahead of a wave of economic data that could set the tone for trading over the near term.
Currency traders said they were keeping an eye on developments in Venezuela, but were more immediately focussed on U.S. employment data, euro zone inflation and UK monthly business activity figures due this week.
Sterling was last down marginally at $1.3461, having ended last week with a 0.3% loss. The pound rose by nearly 8% against the dollar in 2025, marking its strongest annual performance since 2017.
"The pound's weakness reflects broader dollar strength rather than UK-specific concerns, though the move does impact returns for investors holding overseas assets," IG chief markets strategist Chris Beauchamp said.
Against the euro, the pound was a touch stronger, leaving the single European currency down 0.34% on the day at 86.77 pence.
The Bank of England, which cut rates by a quarter point last month, is expected to deliver at least one more rate cut this year, with a strong possibility of a second by year-end, according to money markets.
(Reporting by Amanda Cooper; Editing by Andrew Heavens)
