Sterling’s recovery on Friday to its highest level since mid August has been maintained, with a brief break-out yesterday afternoon against the euro which was rapidly reined in. Following a brief dip against the US dollar early yesterday, GBP/USD has returned to close to last week’s highs.
This morning the economic data has been positive for the UK, with new unemployment claims roughly half the level expected in August, and earnings higher than expected.
We still have nine days to go before the next interest rate decision, but traders are increasingly excited at the prospect of an early rise in interest rates. Tomorrow’s inflation data at 7am will therefore be of great interest. Not only the headline rate, but also the many components of inflation, such as producer prices.
