The pound is down for the first time in three days, as investors are recording profits after the strongest growth of the British currency against the dollar since 2009 amid rising expectations of an increase in the interest rate by the Bank of England. Sterling repeated its recent successes, having risen earlier in Asia to the highest level since the referendum in favor of Brexit. The currency jumped by almost 3 percent at the end of last week after the Bank of England reported on Sept. 14 that it could turn off stimulus “in the coming months.” As for the option market, the value of call options on the pound is kept at the highest levels since 2009. The bonds of the British government interrupted their six-day decline. BOE Manager Mark Carney plans to perform in Washington at 16:00 London time (18:00 MSK). After tightening the tone of statements in the minutes of the last meeting of the Bank of England, the market will follow the further indication of the central bank’s thinking and the timing of raising rates. “There is the possibility of some profit taking into account the scale of the two-day rally,” said Jeremy Stretch, head of analysis of the group of 10 leading currencies in the Canadian Imperial Bank of Commerce in London. “Nevertheless, Carney might well have put straw for a pound later in Washington,” he added.
Sterling fell 0.2 percent to 1.3563 US dollars as of 10:17 in London, rising earlier to $ 1.3619, the highest level since June 24, 2016. It is the first time in seven days that the euro is adjusted, dropping by 0.2 percent to 88.05 pence. The yield on the 10-year government bonds in Britain did not change much: 1.30 percent, after the rally by 32 basis points last week. “After an impressive rally of sterling, any” pigeon “comment by Carney is likely to weaken the sterling more than hawkish comments could support it at current levels,” said Commerzbank AG analyst Ulrich Leichtmann.