The pound strengthened for a sixth day versus the euro, the longest run of gains since September, after a report showed U.K. unemployment dropped more in the three months through April than economists forecast.
A gauge of currency volatility among Group of Seven nations rose to the highest in two weeks before the European Central Bank meets tomorrow amid speculation on what policy makers may do to spur the region’s sluggish economy.
The euro fell to a more-than-three- month low against the dollar as German unemployment unexpectedly increased this month and euro-area lending contracted, boosting the case for more European Central Bank stimulus.
The pound’s world-beating rally is on hold before Bank of England Governor Mark Carney presents the quarterly Inflation Report tomorrow, according to Canadian Imperial Bank of Commerce and Nomura International Plc.
The euro reached a three-month low against the dollar as European Central Bank President Mario Draghi signaled policy makers are ready to take action in June should they see low inflation becoming entrenched.