Pound Rises a Second Day Versus Euro Before U.K. Data Tomorrow The pound advanced for a second day versus the euro before reports tomorrow that economists said will show a measure of British consumer confidence improved in August and mortgage approvals increased in July. Sterling rallied after dropping to a three-week low versus the 17-nation common currency yesterday as Bank of England Governor Mark Carney failed to convince investors that the central bank will keep interest rates at an all-time low. Analysts said U.S. data today will show the economy grew faster in the second quarter than initially estimated, adding to the case for the Federal Reserve to slow stimulus. U.K. government bonds were little changed. “We’re seeing a bit of a hangover from Carney’s speech yesterday, which was dovish but without the intensification of dovishness the market expected,” said Daragh Maher, a foreign-exchange strategist at HSBC Holdings Plc in London. “We saw a bit of a recovery in sterling. This morning is a continuation of that. Data from the U.S. today should support the tapering story, which could see sterling get back to beneath the $1.55 level.” The pound strengthened 0.4 percent to 85.54 pence per euro at 10:04 a.m. London time after depreciating to 86.52 pence yesterday, the weakest level since Aug. 7. Sterling was little changed at $1.5513 after dropping to $1.5429 yesterday, the lowest since Aug. 14. GfK NOP Ltd. will say tomorrow its U.K. consumer sentiment index rose 2 points to minus 14 this month, the highest since February 2010, according to the median forecast of 19 economists in a Bloomberg News survey. bloomberg/news/2013-08-29/pound-strengthens-for-second-day-versus-euro-after-carney-speech.html
Posted on: Thu, 29 Aug 2013 09:34:03 +0000
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