Pound approaches 10-month high as CBI business optimism soars

London - The pound rose for a third day versus the dollar after a Confederation of British Industry survey showed UK factory production reached a two-decade high in the last quarter as optimism about export orders climbed to the highest level since the 1970s.

Sterling strengthened against most of its 16 major peers, approaching the highest level since September versus the US currency.

The Office for National Statistics is due to release second-quarter growth data on Wednesday, which will be the latest insight into the UK’s economic outlook, while investors await the Bank of England’s monetary policy decision on August 3.

UK government bonds fell for a second day as the Debt Management Office sold £2.5bn of gilts due in July 2047.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter: Fin24’s top stories