Sterling breaks through 1.17 level vs. EUR

The pound continued its rise against the euro yesterday, strengthening 0.6 cents (0.51%) to close the day at 1.1756.

• In early trading yesterday, sterling hit a year-high against the euro after a Bank of England/GfK NOP poll showed rising UK inflation expectations. Its rally was also aided by a NIESR report which showed the British economy grew 0.2% on the month in April and 0.1% in May.
  
• These announcements added to a string of fairly firm UK figures out over the past few days, which continued to boost the pound. In particular, better-than-expected industrial production data released on Wednesday lifted investor appetite for sterling.
  
• Finally, strong gains on London equity markets also contributed to sterling’s advances in late trading. The FTSE 100 eventually finished up 25.12 points (0.57%).
  
• So far today, the pound has dipped slightly against the euro as investors continue to digest the data released this week.
  
• There are no major announcements due in the UK or eurozone today.