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2014.06.2014:40:00UTC+00Gbp Break Multi-Year Highs Yesterday at Expectation That Boe Will Raise Interest Rates

  • Confidence amongst investors that UK interest rates will rise sooner than the Bank of England currently predicts saw the pound breach new multi-year highs against the US dollar yesterday. 
  • The move came despite poor UK retail sales data although a separate report on Thursday covering UK industrial activity did touch a six-month high, suggesting Britain's economic recovery is becoming more balanced.  
  • Sterling yesterday breached its highest level against the US dollar since October 2008 but is struggling to make a sustained break through significant resistance levels ahead of next week's BOE announcement.  
  • Governor Carney will speak about housing sector risks on Thursday. 
  • Any action that would negatively impact UK interest rate expectations could limit further sterling gains.

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