Pound Treads Water Amid Month-End Currency Flows

The British Pound has been trading at around 1.3290 against the US Dollar and 1.1670 against the Euro on Wednesday, as month-end currency flows become increasingly influential.

Crédit Agricole notes that there are two competing forces at work: mild Dollar demand according to its portfolio-rebalancing model, and corporate clients buying both Sterling and the Euro.

The bank points out that global equity markets were 'somewhat mixed in July' and the Dollar had an uneven performance across major currencies.