Pound Drops Most in Two Months Against Euro Before Carney Speech
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The pound posted its biggest weekly slide versus the euro since May 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 snapped a two-week rally against the 17-nation currency after a euro-area report yesterday showed consumer confidence increased more in August than analysts estimated. The pound also dropped for the first time in three weeks against the dollar. U.K. government bonds were little changed this week after yields climbed a two-year high. Carney is scheduled to speak in Nottingham, England, on Wednesday.