(Bloomberg) -- The pound may fall against the dollar
on speculation the yield advantage the U.K. has over the U.S.
will shrink further before the U.S. employment report.
The pound held above $2 yesterday, trading near its highest
in 26 years, after the Bank of England lifted interest rates. The
extra yield investors receive for holding 10-year gilts over
similar maturity Treasuries shrank to 38 basis points from 45
basis points on July 4 after private reports showed the U.S.
added more jobs in May than forecast and services industries
growth unexpectedly quickened.
Read more at Bloomberg Currencies News
on speculation the yield advantage the U.K. has over the U.S.
will shrink further before the U.S. employment report.
The pound held above $2 yesterday, trading near its highest
in 26 years, after the Bank of England lifted interest rates. The
extra yield investors receive for holding 10-year gilts over
similar maturity Treasuries shrank to 38 basis points from 45
basis points on July 4 after private reports showed the U.S.
added more jobs in May than forecast and services industries
growth unexpectedly quickened.
Read more at Bloomberg Currencies News
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