Excerpt from: Futures and Commodity News
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| August 30, 2006 | | The pound gains against the U.S. dollar for first time in 20 days | Economic news has the sterling up in spot forex trading against the dollar today. And, according to Forbes, this improving performance in the currency market is likely to continue, as economic indicators signal that a rise in interest rates may be necessary:
'The Bank of England will clearly be uncomfortable with the pace of borrowing,' said David Page at Investec.
'Coupled with strong approvals numbers, which
suggest housing market activity will remain strong going into the
autumn, plus the hawkishness in the last Bank of England Inflation
Report, these (lending) numbers continue to point to interest rates
rising again,' he said.
The pound was also helped higher by a strong
retail sales survey from the Confederation of British Industry late
this morning.
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