A positive day for sterling has seen it make gains across the board, following a positive quarterly bulletin from the Bank of England (BoE), which suggested that the UK economy is well placed to handle slow and limited interest rate increases. The bulletin revealed the results of a survey highlighting the belief that household spending would continue to rise after a rate hike, with aggregate savers predicted to increase spending. After hitting a 15-month low against the US dollar overnight, sterling rebounded strongly throughout the day to finish in a strong position ahead of today’s data releases.
Today will see investors focused on industrial and manufacturing production figures, which are both forecast to show more modest growth following October’s strong reading for both figures. If these beat expectations again, we could see further sterling strength.