Pound Falls Versus Euro, Paring Biggest Weekly Gain in 4 Months
- Sterling has best weekly gain versus dollar after jobs report
- Volatility drop signals easing anxiety over `Brexit' debate
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The pound dropped against the euro, paring its biggest weekly gain in four months, as waning concern about the risk of the U.K. leaving the European Union coincided with signs of economic weakness.
Sterling completed its biggest weekly gain versus the dollar after the U.S. reported on Friday that wages unexpectedly declined in February, data that may diminish the chances of the Federal Reserve increasing interest rates any time soon. U.K. manufacturing data this week signaled the domestic economy is losing momentum, reducing the chances of the Bank of England raising its own benchmark rate. The euro was also supported as traders assess the chances of additional stimulus from the European Central Bank next week.