With little in the way of data releases around the globe, sterling somehow managed to strengthen against its major trade partners yesterday. Comments from Martin Weale, a member of the UK’s Monetary Policy Committee, underlined the central bank’s stance that interest rates will not remain at 0.5% indefinitely. As higher interest rates would be the result of the MPC’s confidence in a robust UK economy, this statement helped to push sterling back to its highest levels against the euro since 10th March. Citing recent wage growth in the country and the general strength of the economy, this positive rhetoric provided stark contrast to the less encouraging news out of the Eurozone this week.
Today sees the release of retail sales data from the UK, which may see sterling maintain yesterdays and strengthen further, given that consumer spending is such an important part of the overall economy.
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