Pound Declines Versus Euro After Completing Best Week Since 2009David Goodman
The pound fell for the first time in six days against the euro, paring gains from its best week since 2009.
Britain’s currency appreciated last week to the strongest level in about seven years on a trade-weighted basis after Bank of England Governor Mark Carney used two public appearances to prepare investors for higher borrowing costs.
Minutes of this month’s BOE meeting, set for release on July 22, will show if the central bank’s nine-member Monetary Policy Committee has started to split on whether to raise rates. It voted unanimously to hold the benchmark at a record-low 0.5 percent at every meeting this year.
“Euro-sterling has had a little bit of a bounce but I wouldn’t say this is the turn in the trend,” said Jeremy Stretch, a strategist at Canadian Imperial Bank of Commerce in London. “Trade-weighted sterling has had a pretty stonking run.”
The pound slid 0.3 percent to 69.62 pence per euro as of 4:47 p.m. London time after appreciating 3.6 percent last week, the biggest gain since January 2009. It touched 69.36 pence on Friday, the strongest level since November 2007. Sterling dropped 0.1 percent Monday to $1.5584.
Deutsche Bank AG’s measure of the pound versus the currencies of Britain’s major trading partners climbed to 91 on Friday, from a low for this year of 82.9 in January. The index was at 90.8 Monday.
U.K. government bonds advanced, with the yield on the benchmark 10-year gilt falling one basis point to 2.07 percent. The 5 percent bond due in March 2025 rose 0.13, or 1.3 pounds per 1,000-pound face amount, to 125.52.
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