The pound is heading for a third week of gains

The British pound fell slightly on Friday, but it is still heading towards recording the third consecutive weekly increase against the US dollar.
Analysts expect the sterling to remain fragile as central banks, including the Bank of England, continue to tighten monetary policy even though the recession is expected to be deeper in Britain than in the United States.

Expectations of a rate hike, which usually boost the value of any currency, could hurt the sterling as it undermines the country’s economic outlook.

On Friday, the Office for National Statistics revised producer price inflation data, meaning that inflation at the factory gates this year was higher than previously expected.
By 0958 GMT, sterling fell 0.3 percent against the dollar to $1.2076, and reached $1.2153, its highest since August 12 on Thursday.
Sterling fell 0.1 percent against the euro to 86.01 pence, on track for its third consecutive weekly rise against the dollar and euro.