The currency in focus today is the British pound as investors await the Bank of England policy meeting to end and for the MOC to announce interest rates. Expectations are strong that the central bank will leave the key lending rate unchanged at 0.5 percent and the asset purchase facility at 375 billion pounds.
Earlier today the sterling jumped against the US Sterling jumped against the dollar after better-than-expected UK manufacturing data which gives signs that the British economy is on the road to recovery.
The data all the more adds to the case for no action from the Bank of England today.
According to the UK Office for National Statistics, industrial production rose 0.7 percent on the month in March well above forecasts of a 0.2 percent gain. Today’s data comes after a downwardly revised increase of 0.9 percent in February.
On a quarterly basis, the first quarter ending in March , industrial output was 0.2 percent higher compared with the previous quarter, exactly in line with what the ONS had projected as part of its first-quarter GDP.
GBPUSD surged to a session high of $1.5585 within minutes of the data at 09:30 am London time, up from a pre-data low of $1.5549.