Global finance chiefs will use weekend talks to recommend monetary policy is carefully calibrated and clearly communicated as they try to settle a spat between the U.S. and emerging markets over the wind-down of Federal Reserve stimulus.
The pound approached a 2 1/2-year high versus the dollar before data tomorrow analysts said will mark the first full year the U.K. economy expanded in every quarter since the financial crisis began in 2007.
The Canadian dollar reached the weakest in more than four years after the Bank of Canada lowered its inflation forecast and said the currency remains strong enough to be a competitive challenge for the nation’s exports.
The dollar will rise versus most of its major counterparts over the next year and find particular strength versus its European peers as rate-cut expectations increase, according to Adam Cole of Royal Bank of Canada.
The pound posted its biggest weekly decline versus the dollar since July as signs the U.S. economy is strengthening fueled bets the Federal Reserve will slow stimulus that tends to debase the greenback.
The pound approached the strongest level since January versus the dollar as an industry report showed construction expanded for a fifth month in September, adding to evidence that the U.K. economy is expanding.