The pound touched the strongest high in one week versus the dollar prior to an industry report set tomorrow, which the economists postulated will report retail sales accrued in January, adding to evidence the recovery is generating momentum.
The UK currency has increased against all except the Swiss franc among its 16 main counterparts in the last three months, despite speculation a progressing economy will induce the Bank of England to escalate interest rates sooner than it forecasts.
The central bank is about to release outlook for economic growth and consumer prices in its quarterly Inflation Report on Wednesday. UK government bonds sank.
“We still have more upside potential for the pound, especially against the euro. If the Bank of England gives us an indication that there is a good chance of them normalizing at some point, it may be far out, but if it’s clear enough that would be a strong message for sterling,” said Commerzbank AG Head of Currency Ulrich Leuchtmann.
The pound was slightly changed at $1.6423 at 4:51 p.m. (London time) after ascending 0.6% in the past two days. It advanced to $1.6428 earlier, the most since February 3. The UK currency was set at 83.09 pence per euro.
Sterling became stronger at 8.1% in the last 12 months, which is the top performer among 10 developed-nation currencies monitored by Bloomberg Correlation-Weighted Indexes. The euro elevated 6% and the dollar accrued 3.5%.
The jobless rate dropped to 7.1% in three months through November, above the 7% estimate by the central bank as the basis for considering increasing rates. In August, the Bank of England said it didn’t anticipate the threshold to be reached until 2016. Unemployment rate was at 7.8% then.
The benchmark 10-year gilt yield gained one basis point or 0.01 percentage point, to 2.72% after falling to 2.64% on February 5, the least since November 5. The price of the 2.25% bond for September 2023 dived 0.06 or 60 pence per 1,000-pound face amount, to 96.065.
Gilts gained 2.2% this year on February 7. Treasuries profited 1.7% and German securities ballooned 2%.
The material has been provided by InstaForex Company – www.instaforex.com
The pound touched the strongest high in one week versus the dollar prior to an industry report set tomorrow, which the economists postulated will report retail sales accrued in January, adding to evidence the recovery is generating momentum.
The UK currency has increased against all except the Swiss franc among its 16 main counterparts in the last three months, despite speculation a progressing economy will induce the Bank of England to escalate interest rates sooner than it forecasts.
The central bank is about to release outlook for economic growth and consumer prices in its quarterly Inflation Report on Wednesday. UK government bonds sank.
“We still have more upside potential for the pound, especially against the euro. If the Bank of England gives us an indication that there is a good chance of them normalizing at some point, it may be far out, but if it’s clear enough that would be a strong message for sterling,” said Commerzbank AG Head of Currency Ulrich Leuchtmann.
The pound was slightly changed at $1.6423 at 4:51 p.m. (London time) after ascending 0.6% in the past two days. It advanced to $1.6428 earlier, the most since February 3. The UK currency was set at 83.09 pence per euro.
Sterling became stronger at 8.1% in the last 12 months, which is the top performer among 10 developed-nation currencies monitored by Bloomberg Correlation-Weighted Indexes. The euro elevated 6% and the dollar accrued 3.5%.
The jobless rate dropped to 7.1% in three months through November, above the 7% estimate by the central bank as the basis for considering increasing rates. In August, the Bank of England said it didn’t anticipate the threshold to be reached until 2016. Unemployment rate was at 7.8% then.
The benchmark 10-year gilt yield gained one basis point or 0.01 percentage point, to 2.72% after falling to 2.64% on February 5, the least since November 5. The price of the 2.25% bond for September 2023 dived 0.06 or 60 pence per 1,000-pound face amount, to 96.065.
Gilts gained 2.2% this year on February 7. Treasuries profited 1.7% and German securities ballooned 2%.
The material has been provided by InstaForex Company – www.instaforex.com
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