Sterling has had a positive week, recovering from a recent setbacks. With little economic data released on Monday, sterling traded within narrow margins against both the euro and US dollar. Tuesday saw the first positive news for sterling as inflation increased more than expected throughout April, increasing speculation that the Bank of England (BoE) policy makers may raise interest rates sooner than expected. However, major movements were reserved for Wednesday, where soaring retail sales data, together with minutes from the latest interest rate meeting, saw sterling appreciate strongly across the board. Sterling reached a 16-month high against the euro, and also appreciated significantly against the dollar.
Despite dropping off against the dollar on Thursday, sterling remains in a strong position at the end of the week, with very little UK economic data due today.
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