Currency Note Sterling

Good data sees sterling strengthen

By Ricky Bean November 14th, 2013

Sterling was buoyant yesterday, making the first gains in three days following positive labour data and encouraging words from the Governor of the Bank of England. Sterling started the day in positive fashion after data released showed that the UK’s overall unemployment rate dropped to 7.6% (previously at 7.7%), whilst the claimant count change (the change in the number of people claiming unemployment related benefits) comfortably beat market expectations. Sterling then continued to advance against all 16 of its most traded partners as the Bank of England (BoE) pointed towards possible interest rate hikes ahead of schedule. The BoE has vowed not to raise interest rates until the overall level of unemployment has reached the 7% target which they suggested would not be met until the first quarter of 2016 but they revised this estimate yesterday suggesting that the target is more likely to be met in the third quarter of 2015. Today, retail sales is the main release on the agenda, with median forecast suggesting we could see no growth at all. Call your trader now for the latest sterling rates, as the long term outlook improves.