Stocks rose sharply on Thursday after the Federal Reserve hinted at possible interest rate cuts as soon as next month.US Marketsread more
The billionaire investor believes the stock market is in a "zone of fair value" at current levels.Marketsread more
Mortgage rates have been falling steadily since the last week of April, and that may be reigniting home price appreciation. The lower the rate, the more purchasing power...Real Estateread more
The Federal Reserve may be on its way to delivering a half-point interest rate cut next month, according to Goldman Sachs economists.Economyread more
However, Slack chief Stewart Butterfield says, "The broader world of email will stick around."CNBC Disruptor 50read more
Crude oil prices jump on news of the attack, which Iran says happened over its territory.World Politicsread more
Apple is considering moving some production from China as it is expected release of its new iPhone line this fall, The Wall Street Journal reported.Technologyread more
Workplace messaging firm Slack is about to go public in a red-hot IPO market, but it's approach to going public--using a "direct listing"--is slightly different than an IPO.Trader Talk with Bob Pisaniread more
The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday.Bondsread more
National Securities' Art Hogan sees the U.S.-China trade war as the market's biggest risk – not Fed policy.Trading Nationread more
The Philadelphia Federal Reserve's manufacturing gauge tumbled this month, solidifying the Fed's case for easier monetary policy.Economyread more
* Sterling gains vs dollar, falls vs euro after ECB meeting
* Implied volatility in the pound remains low as Brexit dominates
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv (Adds details)
LONDON, June 6 (Reuters) - The pound wilted against a rallying euro on Thursday after the European Central Bank disappointed dovish investors, though analysts said the British currency looked broadly directionless until the contest to replace the prime minister was concluded.
The euro shot higher after the ECB meeting, pushing down the pound in late London trading. Versus the dollar, sterling managed to gain but that was because of weakness in the greenback rather than any pound-specific triggers.
Investors are reluctant to take positions on the pound as they await the outcome of the Conservative party leadership contest to succeed Prime Minister Theresa May, who is stepping down.
A eurosceptic winner could increase the risk of a no-deal Brexit, which traders say would send the pound plummeting.
Michael Gove, one of the leading contenders to replace May, said he would delay Brexit rather than rush into a no-deal exit in case it triggers an election that could propel Labour leader Jeremy Corbyn to power.
Traders are also mostly downplaying monetary policy signals, believing that Bank of England Governor Mark Carney will not raise interest rates until the form of Britain's European Union exit is clear.
"The economic indicators coming out of the UK were mediocre. They didn't move the pound. And there's not much (the BoE governor) can do," CMC Markets analyst David Madden said.
The outcome of the leadership contest would be a likely catalyst for the UK currency, he added.
The pound, little changed before the ECB meeting, dropped 0.4% to 88.80 pence per euro as the single currency rallied. It remains near a five-month low of 89.02 pence hit on Tuesday.
Against the dollar the pound rose 0.3% to $1.2721, having recovered from a five-month low of $1.2560 hit on Friday as the dollar has weakened.
Sterling would slide against both the dollar and euro if Britain left the EU without a deal, according to strategists in a Reuters poll.
Median forecasts said that sterling would trade between $1.15 and $1.20 within a month of a no-deal Brexit. The median trading range forecast for the pound versus the euro was 91-96 pence in a no-deal scenario.
Kit Juckes, analyst at Societe Generale, said a no-deal Brexit would lift the euro-sterling rate above 91 pence.
"A rise to 0.93 (93 pence) is possible, a move to parity very unlikely unless by some strange magic the euro rallies while sterling falls," he said, adding that a smooth Brexit could take euro-sterling to a range of 82-88 pence.
"A second (Brexit) referendum would provide a knee-jerk positive reaction were it announced, but the outcome is uncertain."
With fewer traders betting big on the pound, expectations for price swings - measured by implied volatility - remain low.
(Reporting by Tommy Wilkes; Editing by Raissa Kasolowsky, David Goodman and Jan Harvey)