Pound Strengthens to Two-Week High Versus Euro on Europe Discord
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The pound rose to a two-week high against the euro as European leaders clashed on banking plans and a report showed German business confidence declined, boosting demand for the relative safety of the U.K. currency.
U.K. government bonds gained after German Chancellor Angela Merkel and French President Francois Hollande disagreed at a meeting on the weekend on a timetable to introduce joint oversight of the region’s banks. Sterling fell versus the dollar before a government report this week forecast to confirm that Britain’s gross domestic product shrank in the second quarter.