Pound May Decline for Fourth Day Before Bank of England Mortgage Report

(Bloomberg) -- The pound may decline against the
dollar before a report that will probably add to evidence the
housing market is slowing after five interest-rate increases in a
year.

The currency may fall for a fourth day from near a 26-year
high versus the dollar before the Bank of England's mortgage
lending report, which is forecast to show approvals of loans for
home purchases dropped. The pound last week had its biggest
weekly decline against the yen since March as concern U.S.
subprime mortgage defaults will hamper global growth prompted
investors to sell higher-yielding assets.


Read more at Bloomberg Currencies News

U.K. Pound Set for Sixth Weekly Gain on Outlook for BOE, Fed Interest Rate

(Bloomberg) -- The pound headed for its longest
winning run versus the dollar in more than a year on speculation
the Bank of England will keep raising interest rates while the
Federal Reserve stays on hold.

The U.K. currency climbed to a 26-year high this week as the
Federal Reserve trimmed its forecast for economic growth and Bear
Stearns Cos. reported losses on hedge funds that bet on bonds
backed by subprime loans. A report today may show the U.K.
economy maintained its pace of expansion in the second quarter,
according to a survey of economists.


Read more at Bloomberg Currencies News

TREASURIES-Little changed, market awaits jobs data

(Reuters) - Debt prices had also followed British and euro zone bond
markets lower after the Bank of England hiked rates to a six-year
high of 5.75 percent and the European Central Bank backed
expectations for more rate tightening.




June non-farm payrolls figures due at 1230 GMT are forecast
to show that 120,000 new jobs were created last month.


Read more at Reuters.com Bonds News

U.K. Pound May Hold Near 26-Year High on Bets BOE Will Raise Interest Rate

(Bloomberg) -- The pound may hold near a 26-year high
against the dollar on speculation the Bank of England will lift
interest rates today and signal further increases are needed to
curb inflation.

The U.K. currency climbed to $2.0207 yesterday, the highest
since June 1981, and has held above $2 for the past five days.
BOE policy makers will increase their interest rate a quarter
percentage point to a six-year high of 5.75 percent today,
according to 53 of 60 economists surveyed by Bloomberg News.


Read more at Bloomberg Currencies News

FTSE up as M&A boosts hotels, properties; BoE eyed

(Reuters) - Britain's top share index inched higher early on Wednesday ahead of an expected interest rate rise by the Bank of England this week, with hotel groups up after Blackstone agreed to buy Hilton Hotels.

At 0727 GMT, the FTSE 100 was up 17.5 points, or 0.26 percent at 6,657.3, even though the pound had hit a 26-year high against the dollar. European shares also rose.


Read more at Reuters Africa

Dollar Trades Near Record Low as ECB, BOE May Raise Rates Faster Than Fed

(Bloomberg) -- The dollar traded near a record low
against the euro and the weakest in 26 years versus the British
pound on speculation central banks in Europe will raise interest
rates faster than the Federal Reserve.

The dollar has declined against 14 of the 16 most-traded
currencies this year as a U.S. housing slump prompted traders to
bet the Fed will hold, or even lower, borrowing costs this year.
The Bank of England will probably raise rates tomorrow for a
third time this year and the European Central Bank may signal
plans to add to its two increases this year to tame inflation.


Read more at Bloomberg Currencies News

UK stocks rebound on miners, but lag Europe

(Reuters) - Britain's leading index rose on Tuesday, buoyed by miners and strong U.S. gains overnight, but lagged its European counterparts as sterling rose above $2 to levels not seen for a quarter of a century.

The FTSE 100 was up 0.6 percent at 0826 GMT but slightly lower than other European markets as investors anticipated the Bank of England would raise rates to 5.75 percent from 5.5 percent on Thursday.


Read more at Reuters Africa

Pound Holds Above $2 Before House-Price Data; Gilts Rise on Terror Attacks

(Bloomberg) -- Gilts gained, pushing 10-year yields
to near a three-week low, as investors bought the safest assets
after U.K. police arrested five people following an attack on
Glasgow's airport and two attempted car bombings in London.

The gain in gilts, snapping a two-day losing streak, came
after the U.K. Home Office raised its terrorist threat assessment
for the country to ``critical'' after the incidents. The pound
gained for a fifth day before the Bank of England's meeting on
July 5 when policy makers are expected to raise interest rates by
25 basis points to 5.75 percent.


Read more at Bloomberg Currencies News

Bank of England Likely to Lift Key Interest Rate to 5.75 Percent This Week

(Bloomberg) -- Bank of England policy makers will
probably raise the benchmark interest rate for the fifth time in a
year this week as Governor Mervyn King wins more support for an
increase to curb inflation, a survey of economists shows.

The nine-member Monetary Policy Committee will lift the Bank
Rate to 5.75 percent, the highest since April 2001, according to
53 out of 60 economists in a Bloomberg News survey. The central
bank will announce the decision at noon in London on July 5 and
release minutes of its meeting on July 18.


Read more at Bloomberg Bonds News

Bank of England Will Probably Increase Key Interest Rate to 5.75 Percent

(Bloomberg) -- Bank of England policy makers probably
will raise the benchmark interest rate for the fifth time in a
year this week as Governor Mervyn King wins more support for an
increase to curb inflation, a survey of economists shows.

The nine-member Monetary Policy Committee will lift the Bank
Rate to 5.75 percent, the highest since April 2001, according to
seven out of 60 economists in a Bloomberg News survey. The
central bank will announce the decision at noon in London on July
5 and release minutes of its meeting on July 18.


Read more at Bloomberg Currencies News

Pound Heads for Sixth Quarterly Gain on View Rates Have Further to Rise

(Bloomberg) -- The pound headed for a quarterly
gain, its sixth in a row, after a rise in consumer and mortgage
lending supported the view that the Bank of England will keep
raising interest rates to curb inflation.

Data showed consumer credit growth almost doubled in May and
mortgage approvals unexpectedly rose to a three-month high,
suggesting the BOE must do more to cool price growth. Policy
makers next decide on interest rates on July 5, and economists
surveyed by Bloomberg News expect them to lift the main benchmark
a quarter-point to 5.75 percent.


Read more at Bloomberg Currencies News

U.K. Gilts Rise to Two-Week High as Risk-Averse Investors Seek Safer Debt

(Bloomberg) -- U.K. government bonds rose by the
most in two months as risk aversion among investors drove them to
switch out of risker assets, like stocks, and seek the relative
safety of debt.

Debt's advance pushed 10-year gilt yields to a two-week low
as investors wagered that a probable interest rate increase by
the Bank of England next week is already reflected in prices.
European stock markets for a fifth day, following losses
elsewhere in the world, amid concern a slump in the U.S. housing
market will hurt global growth.


Read more at Bloomberg Bonds News

U.K. Pound Extends Decline as Evidence of Slowing Economic Growth Mounts

(Bloomberg) -- The U.K. pound fell for a second day
versus the dollar after a report showed retail sales growth
slowed last month, reinforcing speculation four interest-rate
increases since August are crimping expansion.

Sales growth in Europe's second largest economy slowed to an
annual 3.9 percent last month, from 4.2 percent in April, the
Office for National Statistics said today. A separate report
showed house prices rose at the weakest pace in a year in May.
The data may make it less likely the Bank of England will raise
interest rates, eroding the lure of pound-denominated assets.


Read more at Bloomberg Currencies News

Dollar Trades Near Two-Month High Against Euro Before Inflation Report

(Bloomberg) -- The dollar traded near a two-month
high against the euro before U.S. reports this week that will
probably signal economic growth is recovering.

The U.S. dollar gained for a fifth day versus the euro, the
longest winning run since October, as traders have pared bets
the Federal Reserve will lower borrowing costs this year. The
U.K. pound advanced after Bank of England Governor Mervyn King
suggested interest rates will rise from a six-year high.


Read more at Bloomberg Currencies News

U.K. Pound Heads for Weekly Drop as BOE Keeps Main Interest Rates on Hold

(Bloomberg) -- The U.K. pound headed for a weekly
drop against the dollar after the Bank of England kept its
interest rates unchanged at its monthly meeting yesterday.

The nine-member Monetary Policy Committee, led by Governor
Mervyn King, kept the Bank Rate at 5.5 percent, as predicted by
58 of 62 economists in a Bloomberg News survey. The pound has
benefited from four interest-rate increases in the past year and
inflation that touched a decade-high of 3.1 percent.


Read more at Bloomberg Currencies News

U.K. Pound Gains for Third Day as Traders Add to Bets on Rate Increases

(Bloomberg) -- The pound rose for a third day versus
the dollar as traders added to bets the Bank of England will
continue raising interest rates this year.

The currency also traded near the highest in almost 15 years
versus the yen today as a gain in Asian stocks encouraged
investors to use the so-called carry trade, taking advantage of
low interest rates in Japan to fund purchases of higher-yielding
assets, such as the pound. BOE policy makers will announce their
monthly decision on interest rates this week.


Read more at Bloomberg Currencies News

Pound Headed for Weekly Gain, Ending Four-Week Losing Run, on Rate Outlook

(Bloomberg) -- The pound headed for a weekly gain
versus the dollar, snapping a four-week losing run, on views the
Bank of England will keep raising interest rates.

The U.K. currency traded near a two-week high against the
dollar yesterday as a manufacturing survey underpinned
expectations the central bank will raise borrowing costs twice
more this year. The pound may extend gains before a government
report today that's expected to confirm the economy maintained
the pace of its growth in the first quarter.


Read more at Bloomberg Currencies News

BOE leaves rates unchanged

The Bank of England left interest rates unchanged at 5.25% on Thursday, the Bank's Monetary Policy Commitee (MPC) said.

There had been speculation that the central bank would raise rates to head of an expected further rise in inflation.

Read more at FIN24.co.za

FTSE down amid slew of results, rate uncertainty

Britain's benchmark share index traded just inside negative territory on Thursday in a session packed with corporate results and as investors awaited the Bank of England's interest rate verdict.

On one of the busiest reporting days of the quarter, consumer goods giant Unilever Plc/NV lost more than 2 percent despite topping forecasts with a 27 percent rise in 2006 earnings and saying it expected to deliver underlying sales growth within its target range this year.

Many investors were cautious as uncertainty over the interest rate picture approached its climax ahead of the Bank of England's interest rate decision at 1200 GMT. Interest rates are expected to remain unchanged at 5.25 percent.

Read more at Reuters South Africa

FTSE flat ahead of BoE rate decision, miners up

Britain's FTSE 100 index was flat by mid-session on Wednesday as gains in mining stocks, buoyed by BHP Billiton's results, were offset by concerns over interest rates ahead of a key Bank of England meeting.

BHP Billiton, the world's biggest miner, was the biggest gainer, up 4.1 percent after it announced a 41 percent jump in first-half profit and earmarked an extra $10 billion for share buybacks.

Fellow miners also rose, with Vedanta Resources up 2.3 percent, Kazakhmys tacking on 0.5 percent, Anglo American rising 1 percent and Xstrata adding 0.5 percent.

Read more at Reuters South Africa