U.K. Pound May Extend Gain Before Reports House Prices and Factory Output

(Bloomberg) -- The pound may extend its gains from a 25-year high reached last week before reports that will probably show house prices accelerated and manufacturers are more optimism on the outlook for growth in the U.K.

The British currency soared to $2 for the first time since September 1992 when speculators forced it out of the European system of linked exchanged rate. Signs accelerating inflation is feeding into wage bargaining prompted investors to raise bets the Bank of England will lift interest rates twice more this year, to the highest among the Group of Seven countries.


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