Monday, June 11, 2007

U.K. Pound May Decline Before Reports on Manufacturing, Consumer Prices

(Bloomberg) -- The pound may drop before reports that
will probably show manufacturing and consumer prices slowed last
month, quelling the need for further interest-rate increases.

The pound slumped versus the dollar last week as the Bank of
England kept borrowing costs unchanged at a six-year high of 5.5
percent, and amid a global sell-off in bonds that led the dollar
to rise versus the most traded currencies. Price reports today and
tomorrow are expected to supply evidence that four interest-rate
increases in the U.K. are starting to take effect.


Read more at Bloomberg Currencies News

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