The pound rose to its highest level versus the dollar in 12 weeks as U.K. Chancellor of the Exchequer George Osborne said Britain’s economy is turning a corner and is in the early stages of a recovery.
Sterling was within 0.5 percent of a seven-month high versus the euro before a report on Sept. 11 economists said will show U.K. jobless claims fell last month. Unemployment held at 7.8 percent in July, according to a separate Bloomberg survey, above the Bank of England’s 7 percent threshold for assessing interest rates. Gilts were little changed before the Debt Management Office sells 6.5 billion pounds ($10.2 billion) of government bonds due in 2023 and 2044 this week.
“I am optimistic about sterling,” said Steve Barrow, the head of Group-of-10 research at Standard Bank Plc in London. “The habit has been for U.K. data to come out stronger than expectations and so you are more likely to run with a position in the currency. The momentum is with employment.”
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