Sterling rises over 1.5 cents vs. US Dollar on Friday

Sterling rose sharply against the US dollar on Friday, finishing up 1.63 cents (1%) at $1.6492.

• In early trading on Friday sterling gained against the dollar, as rising share prices stoked some demand for higher-risk currencies like the pound. The FTSE 100 eventually closed up 1.52%.
  
• The dearth of economic data on both sides of the Atlantic also encouraged investors to re-examine optimism that the UK economy may soon recover, a view that was fuelled by more positive data two weeks ago. But poor retail sales data in particular, in addition to speeches by Chancellor Alistair Darling and BoE Governor Mervyn King urging caution about improvements in the economy, weighed on the pound last week. However, sentiment improved on Friday.
  
• In trading so far today the pound has dipped against the greenback, after a report released by the Centre for Economics and Business Research said roughly 334,000 jobs would be lost across the business service sectors in the next three years.
  
• There are no major announcements due in the UK or US today.