Pound Posts Biggest Monthly Decline Since May 2013

The pound posted its biggest monthly decline against the dollar since May 2013 as signs of growth in the U.S. economy boosted expectations for higher Federal Reserve interest rates.

Sterling fell to a seven-week low versus the greenback as data showed U.K. consumer confidence dropped in July and house prices grew at the slowest pace since April 2013. Bank of England Deputy Governor Ben Broadbent said in an interview with Bloomberg News yesterday that the “edge is coming off” the housing market. The pound weakened for a fourth day against the euro, while U.K. government bonds fell as data added to evidence the U.S. labor market is strengthening.