BLBG:Pound Advances Versus Euro as Manufacturing Expands Before BOE
The pound strengthened for the first time in eight days versus the euro after a gauge of U.K. manufacturing rose more in July than economists forecast.
Sterling pared a decline versus the dollar as investors awaited today’s Bank of England’s policy decision, the second under new Governor Mark Carney. The central bank will announce its decision at noon in London. U.K. government bonds rose.
The pound appreciated 0.4 percent to 87.14 pence per euro at 9:46 a.m. in London after weakening to 87.70, the least since March 12. The U.K. currency fell 0.1 percent to $1.5198 after dropping as much as 0.5 percent.
An index of manufacturing activity rose to 54.6 from a revised 52.9 in June, Markit Economics and the Chartered Institute of Purchasing and Supply said. Economists forecast 52.8, according to a Bloomberg News survey. Readings above 50 signal expansion.
The 10-year gilt yield fell six basis points, or 0.06 percentage point, to 2.30 percent after dropping to 2.28 percent, the lowest since July 23. The 1.75 percent bond due September 2022 rose 0.455 or 4.55 pounds per 1,000-pound face amount, to 95.50.
To contact the reporters on this story: Eshe Nelson in London at enelson32@bloomberg.net; Neal Armstrong in London at narmstrong8@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
