Pound Drops to 4-Month Low Versus Euro Before BOE; Gilts Decline
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The pound depreciated to the weakest level since March against the euro as a gauge of U.K. shop prices fell for the third month and before the Bank of England’s latest policy decision.
Sterling slid for a fourth day versus the dollar as investors awaited the central bank announcement tomorrow, the second under new Governor Mark Carney. The Bank of England will release its quarterly Inflation Report next week in which it will include deliberations on adding future guidance on interest rates to policy tools. The pound dropped for a seventh day versus the European common currency, the longest losing streak since January. Gilts fell for the first time in five days.