GBPUSD Sterling climbed against the dollar before data this week that analysts said will show U.K. gross domestic product expanded in the third quarter. While BOE interest rates are at a record-low 0.5 percent, they are higher than those of the euro area and Japan, where policy makers are embarking on more stimulus measures that tend to devalue local currencies. The Office for National Statistics will say on Nov. 26 that GDP increased 0.7 percent in the three months through September, the same as the period through June, according to the median estimate of economists in a Bloomberg news survey. U.K. exports fell 0.1 percent in the period, after a drop of 0.4 percent in the previous three months, according to the economists. Deutsche Bank AG pushed back its estimate for a rate increase from the BOE to August, after previously saying it expected borrowing costs to rise in February, its chief U.K. economist, George Buckley said. Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd. in London said he expects the pound to drop to $1.55 by year-end and reach $1.5250 in the first quarter of next year.
Posted on: Tue, 25 Nov 2014 10:02:17 +0000
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