Sterling slipped from near the strongest level versus the euro (CME:E6M14) since October 2012 before a report this week that analysts said will confirm the U.K. grew 0.8% in the first quarter. An improving economy prompted Bank of England Governor Mark Carney to say on June 12 an interest-rate increase may happen sooner than markets anticipated, a message reiterated in minutes of this month’s Monetary Policy Committee meeting released last week. U.K. government bonds rose.
The U.K. currency was little changed at $1.7009 at 2:17 p.m. London time after rising to $1.7063 last week, the most since October 2008. Sterling traded at 79.93 pence per euro after appreciating as much as 0.2% to 79.77 pence. It reached 79.59 on June 16, the strongest level since Oct. 1, 2012.
Bets by hedge funds and other large speculators on an advance in the pound exceeded those wagering on a decline by 52,596 contracts on June 17, the most since December 2007, data from the Commodity Futures Trading Commission in Washington show.
Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.