Pound Weakens Second Day Versus Euro Before Carney Policy Speech

The pound weakened for a second day versus the euro as investors bet Bank of England governor Mark Carney will use a speech next week to affirm his intention to hold borrowing costs at an all-time low.

Sterling headed for its first weekly drop in three against the dollar. It was set for the biggest weekly slump against the euro since May after data showed euro-area consumer confidence increased more than analysts estimated in August. Benchmark 10-year gilt yields were little changed after approaching the highest level in two years as a report showed the U.K. economy expanded more than initially estimated in second quarter. Carney is set to speak in Nottingham, England, on Aug. 28.