GBP/USD up to 1.6070 as Production Expands

The pound advanced for a third day against the dollar after a government report showed U.K. industrial production increased more in September than economists forecast.

Sterling reached the strongest level in almost five weeks versus the euro after Halifax said British house prices climbed for the ninth month in October, adding to signs the recovery is gaining momentum. The pound will struggle to extend gains after its recent rally, according to Bank of Tokyo-Mitsubishi UFJ Ltd. U.K. government bonds were little changed before the Bank of England announces a policy decision tomorrow.

“There’s capacity to push a bit higher against the dollar,” said Jane Foley, a London-based senior currency strategist at Rabobank International. “There’s so much good news in the price so it will be difficult to sustain gains much above $1.61.”

Bloomberg

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