With more positive data coming from the UK and cautious messages from the central banks of both the US and the Eurozone, sterling has had another positive week. Despite the bank holiday in the UK, sterling held onto its strong positions against both the US dollar and euro on Monday. Tuesday saw sterling remain steady against the euro, whilst better-than-expected data from the services industry saw it reach fresh four-and-a-half year highs against the dollar. With little economic data released on Wednesday, markets were relatively quiet in anticipation of the interest rate decisions from the UK and Eurozone on Thursday. Despite both remaining at their previous levels, sterling rose sharply against the euro to the highest levels since mid-February as European Central Bank (ECB) President Draghi promised swift action if the threat of low inflation in the Eurozone persists.
Today sees the release of manufacturing production figures from the UK, which will give an indication of the health of industry in the UK.
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