Pound Falls, Bonds Advance After U.K. Manufacturing Contracts

July 7 (Bloomberg) -- The pound fell against the dollar and the euro and bonds rose after a government report showed U.K. manufacturing contracted more than predicted in May, deepening concern the economy will tip into a recession.

The U.K. currency slipped to its lowest level versus the dollar in almost two weeks as investors scaled back bets the Bank of England will boost interest rates when it meets July 10. The Office for National Statistics said today output declined 0.5 percent in May from April. The median forecast of 22 economists surveyed by Bloomberg predicted no change. Two-year gilts rose to the highest level in more than a month.

Source: Bloomberg


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