By Joice Alves
LONDON (Reuters) – Sterling steadied on Friday after rising to a two-week high against the dollar as markets awaited for key U.S. inflation data for clues on the Federal Reserve’s next moves.
Against the closely watched declining yen, sterling rose to its highest level in almost 16 years.
It was flat at $1.2510 after rising earlier in the day to its highest against the dollar since April 12, adding to Thursday’s rally after U.S. data showed economic growth unexpected slowed, while inflation accelerated, which reinforced expectations the Fed would not cut interest rates before September.
The inflation surprise put an even greater-than-usual focus on the release of U.S. personal consumption expenditures (PCE) price index data for March due at 1230 GMT.
Against the euro, sterling was also about flat, 0.1% on the day at 85.64 pence, both currencies having risen against the…
