CURRENCY VIEW

Major Forex News
Pound Rises After BOE Boosts U.K. Growth Outlook; Gilts Decline
The pound rose for the first time in four days against the euro as the Bank of England upgraded its estimate of the U.K. economy in its quarterly Inflation Report.
Sterling strengthened against all except one of its 16 major counterparts after Governor Mervyn King said a recovery was in sight as he presented his final forecast for the economy. The U.K. currency also advanced after a report showed British jobless claims fell in April. U.K. government bonds declined for a second day as demand for safer assets waned.
The pound advanced 0.3 percent to 84.68 pence per euro at 11:25 a.m. London time after depreciating to 85.17 pence yesterday, the weakest since April 25. Sterling gained 0.1 percent to $1.5217 after declining to $1.5193, the lowest level since April 4.
The Bank of England forecast the expansion may accelerate to 0.5 percent this quarter from 0.3 percent in the first three months of the year. The central bank predicted inflation will peak at 3.1 percent in the third quarter of this year, lower than expected in February.