The sterling rose versus the euro after a four-day run of losses just before the Bank of England releases the minutes of its Monetary Policy Committee meeting on Wednesday and the Governor Mark Carney addresses a business conference in Glasgow.
The pound rose 0.3 percent to trade at 78.97 pence per euro as of 4:50 p.m. in London. It had earlier touched 78.89 pence on July 17, its highest level since September 2012. The U.K. currency rallied 0.1 percent to $1.7058 after earlier surging to $1.7192 on July 15, its strongest level since October 2008.
The pound was buoyed by data that indicated that Britain’s budget deficit remained slightly unchanged in June despite the resurgent economy resulting in higher tax receipts.
“The market seems to be hanging on every hawkish word from Mark Carney,” Lee McDarby, a London-based executive director of U.K. corporate foreign-exchange sales at Nomura International told Bloomberg. “We are more likely to see a rate hike from the Bank of England in 2014 than we are from the European Central Bank or the Federal Reserve.”
Carney is expected to address a global business audience tomorrow in Glasgow which is being spearheaded by the U.K.’s investment promotion agency. The minutes of BOE’s latest meeting will reveal exhaustively how the nine members of the MPC voted to retain the record-low interest rates at 0.5 percent on July 10.
The Office for National Statistics reported that U.K.’s net borrowing stood at 11.4 billion pounds in June compared with 11.5 billion pounds 12 months ago. Government revenue increased 4.7 percent while expenditure rose 3.9 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org