A positive day for sterling saw it make slim gains against both the euro and US dollar, as investors manoeuvred in preparation of today’s interest rate decisions by the Bank of England (BoE) and the European Central Bank (ECB). The service industry data showed that the sector had grown faster than economists forecast throughout May, which gave sterling a welcome boost during the morning. Together with data from the construction and manufacturing industry – released earlier in the week – this indicates that Britain’s economy should continue with the strong level of growth seen last quarter.
Today’s major economic data from the UK looks to be the release of the interest rate decision from the BoE. Although this is expected to remain unchanged, further strong growth data is likely to liven discussion within the Monetary Policy Committee regarding an early rate hike.