Major Forex News
Pound Slides to 2 1/2-Year Low as U.K. Output Falls; Gilts Rise
The pound dropped to the lowest against the dollar in more than 2 1/2 years and government bonds advanced as a report showed U.K. industrial production unexpectedly declined in January.
Sterling weakened for a fifth day against the U.S. currency, the longest losing streak since January, as manufacturing output also contracted. Gilts gained for a second day after the Royal Institution of Chartered Surveyors said house prices decreased in February. Two-year yields slid to the lowest level since September amid speculation the data will add weight to calls for more stimulus, or quantitative easing, by Bank of England policy makers.
The pound fell 0.1 percent to $1.4898 at 12:32 p.m. London time after sliding to $1.4832, the lowest level since June 23, 2010. Sterling was little changed at 87.55 pence per euro, after weakening as much as 0.4 percent.
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