Sterling rallied strongly this week, pushing to multi-month highs against both the euro and US dollar following the release of surprisingly positive economic data from the UK.
Sterling saw little movement at the start of the week, and remained largely flat when inflation of 0.3% through the previous month was confirmed to have missed the forecast level of 0.5%.
Markets exploded into life on Wednesday, however, as the latest polls showed a strong lead for the ‘Remain’ camp with regards to the upcoming EU referendum. Coupled with better-than-expected average earnings data, and unemployment remaining at an 11-year low, sterling “soared” across the board. This move was reinforced on Thursday, with sterling hitting a three-month high against the euro following better-than-expected monthly retail sales growth of 1.3%.
Sterling’s movement against the US dollar was tempered somewhat due to more positive than expected minutes from the Federal Reserve’s latest monthly meeting over a possible US interest rate rise in either June or July.
A quiet day in the markets today for economic data releases gives investors time to digest the latest movements for sterling, and could see some correction in the markets.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.