Sterling has had a positive week, strengthening across the board against all other major currencies including the euro and the US dollar. Major movement came on Wednesday following the release of the quarterly inflation report from the Bank of England (BoE) where the fourth-quarter economic growth forecast was upwardly revised from 0.7 to 0.9%, and the 2014 growth forecast increased to 3.4% from 2.8%. This, along with confirmation from BoE Governor Mark Carney that interest rates would remain stable, contributed to the sterling trading positively against all major trade partners and reaching the highest levels against the dollar and euro since the end of January and very close to twelve month plus highs.
Release of retail sales data on Tuesday showed that growth in this sector had also increased through January, adding to the positive mood. No significant data is due to be released today so, unless news from elsewhere should knock sterling off its pedestal, sterling should at least maintain its strength through today.
Wondering whether to buy or sell sterling? Get in touch with your trader today for the latest sterling rates, and to take advantage of the week’s good results and sterling regaining lost ground to sit close to twelve month plus highs against a whole range of major currencies.