Sterling has had another good week, appreciating across the board on the back of impressive employment data. Sterling held ground on Monday in the face of strong retail sales data from the US, after Rightmove Plc. highlighted that house prices had increased to an all-time high in April. Tuesday saw sterling make gains against both the euro and US dollar despite inflation in the UK falling in February as the worsening situation in the Ukraine fuelled uncertainty over the dollar and the euro. Sterling rallied strongly yesterday reaching its highest levels in a month against the euro, while approaching 5-year highs against the US dollar. A rate of 6.9% brought unemployment to its lowest level since November 2009, and also brought it below the 7% level previously held as a threshold for the Bank of England to raise interest rates.
Today’s focus will be on the US, where the release of unemployment claims and the Philadelphia Federal Reserve manufacturing index may cause the US dollar to improve its current position.
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