The English pound achieved its top gains in about one month against the world's reserve currency after economic data noted U.K. services production grew more than projected last month, according to Bloomberg.
The pound climbed against all but three of its 16 major rivals. Bonds issued by the U.K. government dropped as the Bank of England prepares to convene for two days of meetings on Wednesday, during which the body's focus will be interest rates.
"This is a very positive report on the U.K. services economy, especially if we consider the employment subindex," head of market analysis Eimear Daly with Monex Europe Ltd. in London told the publication on Tuesday. "The report suggests this spare capacity slack is being squeezed tighter and the Bank of England will soon run out of room to keep policy loose. Even at these lofty heights sterling still has further to go."
The pound advanced about 0.5 percent against the U.S. dollar, notching its top advance since April 8 against its cross-Atlantic rival.
MarketWatch reports regional new business and activity were on the rise while employment also was climbing.
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