LONDON, Jan 4 (Reuters): Sterling edged up on Thursday after surveys showed Britain's dominant services sector rebounded strongly last month although investors remained cautious of pushing the British currency higher due to a lack of broad catalysts.
The pound also benefited from broad-based dollar weakness and a general rebound in risk sentiment which has lifted sentiment towards the British currency, but persistent structural factors, such as a widening current account deficit, kept investors wary.
"Looking at positioning data, inflation and a big current account deficit, sterling looks to be more of a sell than a buy at these levels," said Hans Redeker, global head of currency strategy at Morgan Stanley based in London.
Sterling rose a quarter of a per cent higher at $1.3545 and remained within striking distance of a four month high of $1.3659 hit in late September.
Long bets on sterling are hovering near their biggest levels in more than three years.
Sterling edges higher on survey data
FE Team | Published: January 04, 2018 21:20:26
Sterling edges higher on survey data
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