Sterling remains strong

Sterling secured its position against the dollar this morning (January 14th) when it again continued its four-week high of just over $1.63 to the pound at 13:00GMT.

The currency also traded well against the euro, with one pound buying €1.127 at 16:00GMT.

Sterling's increases against the euro and the US dollar mean that the British currency is continuing to make steady gains in the market.

Calyon currency analysts told Reuters that comments from policymaker Andrew Sentence at the Bank of England (BoE) on Wednesday (January 13th), were likely to have "bolstered" the UK currency.

The analysts said: "GBP...is enjoying the propulsion not just of better data but of less overtly dovish rhetoric from the BoE."
"The 'spin' now seems to be that enough has been done to stimulate the economy, and the easing is over. For a currency bashed by rate cuts and quantitative easing, this change in dynamic is significant."

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Posted by Chris Barber