Pound Falls Against Euro as Traders Reduce Bets on Interest-Rate Increases

(Bloomberg) -- The pound declined against the euro as
investors cut expectations the Bank of England will raise
interest rates this year for a sixth time.

Traders are betting on one more rate increase on signs
borrowing costs at a six-year high are beginning to slow the
economy. The European Central Bank, by contrast, will raise rates
at least twice more, futures trading shows. Economists predict
U.K. industrial production almost stalled in June, adding to
signs the economy may be losing momentum.


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U.K. Pound Heads for Weekly Advance Versus Dollar as Carry Trade Resumes

(Bloomberg) -- The pound headed for a weekly gain
against the dollar as credit markets rebounded, prompting
investors to resume so-called carry trades.

The pound is also poised for its biggest advance against
the yen in six weeks as stocks recovered and traders bought
high-yielding currencies with loans from Japan. Investors added
to bets the Bank of England will raise interest rates at least
once more from 5.75 percent by year-end.


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U.K. Pound Rises to Highest Since May 1981 on Rate Differential With U.S.

(Bloomberg) -- The pound rose to its strongest
against the dollar since May 1981 on speculation the appeal of
U.K. assets will increase as the Bank of England keeps raising
interest rates while the Federal Reserve stays on hold.

The U.K. currency extended its six-week rally as the highest
benchmark yields of any Group of Seven nation lured investors
from abroad. U.K. rates will have to rise further, probably next
month, to stabilize inflation which held above the bank's target
for a 14th month in June, Ernst & Young LLP said.


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U.K. Pound Rises to Highest in 26 Years on Outlook for BOE Interest Rates

(Bloomberg) -- The pound rose to its strongest in
26 years against the dollar on speculation the Bank of England
will keep raising interest rates.

The highest benchmark bond yields of any Group of Seven
nation have lured investors from abroad and pushed up the pound.
A report last week showed the U.K.'s economic expansion
unexpectedly quickened in the second quarter, while the U.S.
Federal Reserve trimmed its forecast for growth.


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