The pound strengthened for a fifth day against the dollar, the longest winning streak in almost three months, after Prime Minister David Cameron said an improving economy may allow the government to cut taxes.
The U.K. currency advanced versus 12 of its 16 major counterparts before a report this week that analysts say will show economic growth accelerated in the second quarter. The expansion of the financial services industry may create more than 250,000 jobs and fuel a 2 percent to 3 percent increase in gross domestic product, according to PricewaterhouseCoopers LLP. U.K. government bonds rose.
“The data of late has been consistent with a gradually improving backdrop and something of a self-sustaining recovery,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “That’s providing a reasonable start to the week from a sterling perspective.”