Sterling climbs against dollar ahead of Yellen's speech

Sterling rose for the fourth session in five against the dollar, following earlier data from Britain and the US, and ahead of Federal Reserve Governor Janet Yellen's speech about global economic issues at the British Academy 'President's Lecture', in London, later today. 

As of 05:59 GMT, GBP/USD rose to 1.2783 from the opening of 1.2723, with an intraday low at 1.2717, and the highest since June 19 at 1.2706. 

Earlier From Britain we saw the Financial Stability report from Bank of England, at which policymakers asserted their resolve to tighten the limits on mortgage lenders, and mentioned how mortgage and corporate debt is open to repricing, while pointing to plans to raise the minimum requirements for banking leverages to 3.25% to overall exposure, except corporate bonds at 3%. 

The report also touched on the recent rapid rate of consumer borrowing and deterioration of lending standards in real state, while BoE Governor Mark Carney held a press conference, talking in it about the emergency plans for all Brexit scenarios, while mentioning how consumer debt outpaced overall income last year, while asserting that policy decisions bolster the economy in times of uncertainty. 

Carney touched on the risks facing financial stability as Britain exit the European Union, especially for lenders, and adding that monetary policy represent the last line of defense to guarantee stability, and saying that risks originating from China's economic situation are on the top of the global risks facing Britain, while recent British election results didn't change the BoE's plans to contain Brexit risks. 

Otherwise, earlier US data showed an unexpected rise in consumer confidence in June, while the Richmond manufacturing index rose past expectations, as the S&P/CS Composite-20 House Price Index fell unexpectedly. 

Similarly, we followed Federal Reserve Bank of Philadelphia President Patrick Harker's speech about the economic outlook and international trade at the European Economics & Financial Centre, in London, at which he described the recent weakness inflationary pressures in the US as transient, while expressing his ongoing support for tightening the policy and increasing interest rates.

Harker said another Fed rate hike this year would be appropriate, while downgrading his inflation projections a bit, but still expecting inflation to hit the Federal Reserve's 2% target by 2018, adding that the Fed is moving into the right direction, and the labor sector is getting rid of its weaknesses almost entirely, and forecasting a growth rate of 2.3% in America this year.