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Sterling climbs as UK growth gathers pace in Q2

Sterling climbs as UK growth gathers pace in Q2LONDON: Sterling rose against the dollar and the euro on Tuesday, after data showed the British economy picking up pace in the second quarter, supporting a view that the Bank of England could start raising interest rates in the coming months.

Gross domestic product grew 0.7 percent on the quarter in the April-June period — in line with forecasts — after a first-quarter expansion of 0.4 percent.

Second-quarter output was 2.6 percent higher than a year earlier, also in line with expectations.

Sterling rose to $ 1.5587 after the data from around $ 1.5535 beforehand, up 0.2 percent on the day.

The euro extended losses to trade at 70.98 pence, having traded at 71.22 pence beforehand.

British government bond futures fell by around 10 ticks to 116.51, down 37 ticks on the day.

Copyright Reuters, 2015

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