Despite supportive data and market predictions of an interest rate rise, sterling fell against the euro yesterday following positive economic data on the Continent.
Against the US dollar, however, the reverse was true, with GBP strengthening by close to half a cent and that accelerating so far this morning, as the betting reaches 100% on the interest rate rise on Thursday.
Yesterday went against the run of play, however, and taking the week as a whole sterling has performed well against all but USD and the Norwegian krone (NOK).
This morning we have heard that UK house prices rose by 0.8% in January (11.2% over the year) and later this morning there will be data on Consumer Credit – which last month shot forward by £1.2bn – mortgage approvals and lending, and manufacturing PMI.
