U.K. Pound to Slide on `Grim' Inflation Report Tomorrow, BNP Paribas Says
The pound will probably extend its 1.4 percent decline against the dollar over the past two days, should the Bank of England’s Inflation Report tomorrow add to evidence the economic recovery is cooling, BNP Paribas SA said.
“The U.K. data continues to disappoint and is putting sterling under renewed downward pressure,” analysts led by Hans-Guenter Redekerin London, wrote in a research note today. “Tomorrow’s inflation report should confirm the grim outlook on the U.K. We expect the BOE to cut its growth and inflation forecasts.”
The British currency dropped 1.1 percent to $1.5723 as of 1:39 p.m. in London today, after a housing-market gauge showed the first decline in prices in a year in July and a separate survey said stores posted slower sales growth last month. The pound is headed for its first back-to-back losses against the greenback since July 19.
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