Sterling up on interest rate expectations
The pound could gain for a second day on widespread expectations that the Bank of England's money policy committee will set a trend with an interest rate rise today.
Sterling was worth 67.02p on the euro in early currency trading today, up from 67p yesterday, and at $1.9043 on the dollar, up from $1.9055 yesterday.
The bullish market was reinforced by a Nationwide consumer confidence survey showing the indicator at 98, a nine month high, up from 89 in September.
Consumer spending appears to be driving economic growth, with a British Retail Consortium study showing October high street sales rose at their fastest rate in three months.
Most analysts are pegging their expectations on at least one more quarter-point rise following unanimous predictions of borrowing costs
rising to five per cent today.
"From a yield perspective today's expected rate hike is positive for sterling," Calyon currency strategist Daragh Maher told Bloomberg.
"The statement that accompanies it will be hawkish as well and may hint at further tightening being necessary."