Pound Falls Against Dollar as Gilts Rise Before Forward Guidance

The pound fell for a second day against the dollar and government bonds rose before Bank of England Governor Mark Carney gives a review of implementing forward guidance to signal the direction of U.K. interest rates.

Sterling weakened against most of its 16 major counterparts before Carney presents the central bank’s assessment of the use of thresholds along with the quarterly Inflation Report, and will also hold a press conference in London. The Federal Reserve has pledged to keep its short-term interest-rate target near zero at least until U.S. unemployment falls to 6.5 percent and as long as forecast inflation isn’t above 2.5 percent.