The pound rose against the euro and the dollar after the release of better-than-expected UK data. The data suggested the UK economy may be stronger than previously thought, prompting investors to buy sterling.
Market Reaction
The positive data triggered a wave of sterling buying, pushing the currency to a session high against both the euro and the dollar. Analysts noted that the data provided a much-needed boost to market sentiment, which had been weighed down by concerns about the UK’s economic prospects.
Key Data Points
- Manufacturing output exceeded expectations.
- Construction sector activity showed signs of recovery.
- Service sector growth remained robust.
These data points collectively paint a more optimistic picture of the UK economy, supporting the pound’s recent gains.
Analyst Commentary
“The data is certainly encouraging and suggests that the UK economy is proving more resilient than many had feared,” said a senior currency strategist at a major investment bank. “However, it is still too early to declare victory, and further positive data will be needed to sustain the pound’s rally.”
The pound’s performance will likely remain closely tied to future economic data releases and any policy announcements from the Bank of England.
