Sterling maintained impressive gains from yesterday’s morning session, hitting the highest levels against the dollar and euro since the end of January, following the release of the quarterly inflation report from the Bank of England (BoE). Fourth-quarter economic growth for 2013 was upwardly revised from 0.7 % to 0.9 %, and the full year growth forecast for 2014 improved from 2.8% to 3.4%, fuelling investor confidence about the long term prospects for the economy. BoE Governor Mark Carney also confirmed that interest rates would remain stable, shifting focus away from the previous 7% unemployment threshold. Carney also emphasised that any eventual changes in the bank rate will be gradual, in order to encourage sustainable economic expansion.
Today there is little of note to be released in the UK which is expected to affect the position of sterling but there is a lot happening overseas which may well have a knock on effect.
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