Pound falls versus euro before U.K. second-quarter growth data
By Bloomberg
The pound fell for the first time in four days against the euro before a report that analysts said will show U.K. economic growth slowed in the second quarter.
Sterling broke its longest run of gains in three weeks against Europe’s shared currency. U.K. gross domestic product grew by an annualized 2.6 percent in the second quarter, according to the median forecast of economists in a Bloomberg survey. That compares with 2.9 percent growth in the three months ended March. Britain’s currency rose versus the dollar.
“Some cautiousness on sterling is warranted” before U.K.’s growth data, according to analysts at Credit Agricole SA led by Valentin Marinov, the London-based head of Group-of-10 foreign- exchange strategy. “Potential disappointments today could encourage further unwinding of sterling-longs across the board.”
A long position on a currency means betting on its rise.
The pound weakened 0.4 percent to 73.27 pence per euro as of 8:59 a.m. London time. It strengthened 0.9 percent over the previous three days. Sterling rose 0.1 percent to $1.5420.
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