- Analysts scrutinizing data to gauge timing of rates increase
- BOE officials set to release policy-meeting minutes Thursday
The pound advanced for a third day against the euro before a report that economists said will show a rebound in industrial production, displaying the resilience of the British economy, before Bank of England officials on Thursday signal how they view their outlook on interest rates.
Sterling was little changed against the dollar, holding on to a two-day advance that was the biggest in almost three months. Industrial output advanced 0.1 percent in July, stabilizing after a 0.4 percent slide the month before that was the largest since May 2014. The BOE will keep its main interest rate at a record low 0.5 percent, according to all 42 economists surveyed by Bloomberg. The focus on Thursday will center on the minutes.
The pound appreciated 0.2 percent to 72.63 pence per euro as of 9:21 a.m. London time, pushing its advance since Sept. 4 to 1.1 percent and erasing its decline from last week. Sterling was at $1.5391, after jumping 1.5 percent over two days.
U.K. bonds slid for a second day, with the 10-year yield rising four basis points, or 0.04 percentage point, to 1.88 percent. The 2 percent bond due in September 2025 fell 0.395, or 3.95 pounds per 1,000-pound face amount, to 101.07.