LONDON Nov 8 Sterling rose, hitting a five-week
high against the euro, while gilts fell on Thursday after the
Bank of England left interest rates and its quantitative easing
The decision had been broadly expected after recent
stronger-than-expected UK third quarter growth figures but
traders said some investors had positioned for the risk that the
BoE could opt for more stimulus.
The euro fell 0.2 percent on the day to 79.69
pence, its lowest since Oct. 1, from around 79.88 pence before
the decision. It stopped just shy of chart support at the
100-day moving average around 79.64 pence.
The pound rose to around $1.5978 against the dollar
from $1.5952 before the BoE decision, though it was still lower
on the day and below the session high of $1.5994.
December gilt futures fell by around 12 ticks
immediately after the announcement and then continued to fall.
At 1202 GMT, they stood at 120.02, down 18 ticks on the day.
Britain's FTSE 100 index edged higher, to trade up
by 0.3 percent at 5,809.26 points, having been up by 0.2 percent
before the BoE's decision.