Sterling steady near seven-week highs

01 Aug, 2006

Sterling was steady against the dollar on Monday, holding close to seven-week highs reached last week ahead of UK data due later in the day which would give clues on the interest rate outlook.
Recent UK data releases have been reasonably robust, including above forecast inflation and economic growth numbers. This has rekindled expectations for a rate hike in coming months - though economists reckon there is only a 30 percent chance of such a move this week.
Bank of England consumer credit and mortgage lending figures are due at 0830 GMT. The data are expected to show growth in mortgage lending cooled a bit after several months of very strong rises, and unsecured consumer credit growth slowed as well.
By 0730 GMT sterling was steady against the dollar at $1.8636, but still close to seven-week highs reached last week at $1.8675. Against the euro, sterling was steady at 68.46 pence.

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