Currency Note Sterling

Positive data and rhetoric supports sterling – will it last?

By Smart Currency November 15th, 2013

Sterling’s performance this week was dominated by two key events; the inflation data released on Tuesday and the Bank of England’s report on Wednesday. Sterling first dropped sharply as the Consumer Price Index came in below expectations which in turn would have put less pressure on the Bank of England to raise interest rates. However, Wednesday then saw encouraging employment data followed by an upbeat the report from the Bank of England. In this, it was stated that the BoE expected the unemployment rate to reach their target of 7% in the third quarter of 2015, rather than the first of 2016, which would then prompt them to consider the interest rate hikes earlier than originally thought. This gave sterling a strong boost, as well as speculation yesterday that the UK economy will be a top performer in the coming year. Retail sales was the only disappointing data for the week, while today sees out the week in quiet fashion. Call your trader now for the latest sterling prices, after a good week for the long term outlook.