01.08.201404:17:53UTC+00Sterling posts largest monthly dive since 2013

The British pound sterling logged its largest monthly decrease versus the US dollar since May 2013 as a better the US economy bolstered anticipations for Federal Reserve rate hike.

Sterling dropped to a seven-week low versus the greenback as data reflected the UK consumer confidence fell in July and house prices improved at the slowest pace since April 2013. Also, the currency weakened on the fourth day versus the euro.

In an interview with Bloomberg News yesterday, Bank of England Deputy Governor Ben Broadbent said the edge is coming off the housing market.

“Both the U.K. housing and consumer confidence data releases were on the weaker side and I would expect further declines for pound-dollar. The Broadbent comments catalyze the selling process. Investors who were looking to sell on a small blip will go to the market and sell on these comments. For me, it was a warning that rates should not be raised too quickly,” said Neil Jones, Head of Hedge-Fund Sales at Mizuho Bank Ltd.

The pound slipped 0.2% to $1.6884 as of 4:35 p.m. (London time), stretching its monthly fall to 1.%. The currency hit $1.6857, the lowest since June 12. Against the euro, it weakened 0.1% to 79.28 pence, cutting this month’s gain to 1%.