Pound falls, gilts tick higher after weak UK data
LONDON, Nov 5 (Reuters) - Sterling fell versus the euro and the dollar on Monday, while gilts and UK interest futures ticked higher after data from Britain's manufacturing and service sectors came in below forecast.
UK industrial output unexpectedly fell on the month in September [ID:nONS003151], while growth in the service sector eased to its slowest pace in more than four years in October.
"It was justified that it (sterling) turned lower because it (the data) was weaker than expected," said Daragh Maher, currency strategist at Calyon.
"We seem to have had a run of soft data and so we run the risk of nasty pullbacks (in sterling)."
By 0934 GMT, sterling had fallen to a session low of $2.0817, down from around $2.0855 before the data. The euro rose to 69.45 pence.
December long gilt futures rose to stand 11 ticks higher at 107.93, having been three ticks higher before the data.
Front-month interest rate futures moved into positive territory while back-month contracts rose to stand as much as four ticks higher.
Source supplied by: Reuters