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Pound Advances for Third Day Before UK Industrial Output Data - (Bloomberg)

Posted by Chris Advincula on Nov 6, 2013 4:04:00 AM

The pound rose for a third day against the dollar before a government report economists said will show U.K. industrial production expanded in September.

Sterling climbed to a one-month high versus the euro. Output (UKIPIMOM) expanded 0.6 percent from August, when it dropped 1.1 percent, according to the median forecast of 28 economists in a Bloomberg News survey before the Office for National Statistics releases the data today. Britain’s currency rallied versus all but one of its 16 major peers yesterday after a report showed U.K. services activity expanded at the fastest pace in 16 years in October.

The pound gained 0.2 percent to $1.6071 at 7:33 a.m. London time after climbing 0.8 percent in the previous two days. The U.K. currency was little changed at 84.03 pence per euro after appreciating to 83.85 pence, the strongest since Oct. 3.

Bank of England policy makers will leave the key interest rate at a record-low 0.5 percent and the asset-purchase target at 375 billion pounds, according to Bloomberg surveys of economists before tomorrow’s announcement. Governor Mark Carney presents new quarterly forecasts on Nov. 13.

The pound gained 4 percent in the past six months, the most among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar rose 0.2 percent and the euro climbed 3.9 percent.

U.K. government bonds lost 2.8 percent this year through yesterday, according to Bloomberg World Bond Indexes. Treasuries slid 2.4 percent and German securities declined 1.3 percent. 

 

gbp.4am.11.6 resized 600

Chart: WorldWideMarkets Alpha Trader

 

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