Sterling Remains Strongest with Help of Positive Data

The Great Britain pound continued to rally to new highs today, following yesterday’s strong performance, thanks to the positive macroeconomic data from the United Kingdom. In fact, the sterling is the strongest major currency so far this week.
British Retail Consortium reported that retail sales fell in April fro a year ago. Yet the reading was distorted by the Easter holiday, while the 3-month moving average, which removes the distortion, demonstrated strongest growth since the last June.
Data from the manufacturing sector was also supportive for Britain’s currency. Both manufacturing production and industrial output grew in March, exceeding analysts’ expectations.
All in all, fundamentals looked vastly positive for the pound, helping the currency to rally to the strongest level since December against the US dollar and the Japanese yen.
GBP/USD rallied from 1.5584 to 1.5666 as of 14:12 GMT today, and its daily high of 1.5709 was the strongest mark since December 17. GBP/JPY was up from 187.14 to 187.92, reaching the highest level since December 9 of 188.36. Meanwhile, EUR/GBP gained from 0.7155 to 0.7189, though it retreated from the daily high of 0.7225.

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