Another positive day for sterling saw the currency strengthen again against both the euro and the US dollar; this was a result of the news that inflation had increased by 0.5% throughout March – compared to the 0.3% rise expected. Investors were positively surprised by this result, and while the fears over the Brexit remain at the forefront of their minds, this allowed sterling to push up to a fresh two-week high against the US dollar.
We may well see this increased inflation rate provide further benefit when the minutes from the Bank of England (BoE)’s latest monetary policy committee meeting are released on Thursday. The unexpected increase could have an effect on how central bankers see the timing for the next interest rate move, reducing timescales significantly.
Today we see little influential data released from the UK; the BoE’s Credit Conditions Survey provides the main point of interest. However, it is likely that this will be overlooked as investors await the monetary policy meeting minutes tomorrow.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.