Pound Slides to Eight Week Low – Data Disappoint
The pound slid to an eight week versus the dollar on concern the U.K.’s economy is falling short of analysts’ expectations.
Sterling weakened against all but two of its 16 major counterparts as data showed Britain’s shop prices dropped the most on record last month. Industrial output also climbed less than economists forecast in June, according to a separate report.
A close below $1.6820 may “trigger some more downward momentum, long sterling is the most-crowded position” BNP Paribas’ Michael Sneyd said.
Buoyed by a resurgent economy, the pound has strengthened 11 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes.
Bank of England officials, starting a two-day monetary policy meeting today, will keep the benchmark interest rate at a record-low 0.5 percent tomorrow, according to all 47 economists surveyed by Bloomberg.
Source: Bloomberg
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