Pound Completes Biggest Monthly Advance in a Year Against Euro
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The pound had its biggest monthly advance in a year against the euro as reports today showed consumer confidence and house prices rose in August and mortgage approvals increased in July.
The U.K. currency strengthened at least 0.6 percent versus all of its 16 major counterparts this month as signs Britain’s economy is gaining momentum fueled speculation the Bank of England will have to raise interest rates sooner than it forecasts. Short-sterling futures declined in August as investors increased bets for higher borrowing costs. U.K. government bonds were little changed today after the 10-year yield reached the highest since August 2011 yesterday.