Sterling drops on investor caution

Sterling's growth against the US dollar and euro has stalled, on the back of disappointing economic n...

Sterling's growth against the US dollar and euro has stalled, on the back of disappointing economic news, according to foreign exchange broker Caxton FX. The pound fell to $1.61 and €1.16 this week, compared to 10% gains in May, as higher than expected inflation and rising unemployment figures shook consumer confidence. "Economic recovery is under way but the recent data suggests that it looks quite weak at this stage," says Caxton senior trader Alex Dunn. "We think that investors are taking a pause for breath as they register that the recovery will be slow and gradual rather than a swi...