LONDON: Sterling rose to its highest in three weeks against the dollar and a one-month maximum against the euro after data on Tuesday showed industrial output rose much faster than forecast in February.
The pound has struggled to make more progress against both the dollar and euro over the past two months as doubts over the durability of Britain's economic recovery emerged and traders judged the bulk of the good economic news to be priced in.
Output rose 2.7 percent year-on-year and 0.9 percent on the month in February, compared to expectations respectively for rises of 2.2 and 0.3 percent. Sterling jumped almost half a percent in response to as high as $1.6713 and 82.36 pence per euro.
British government bond futures extended losses by 10 ticks after the data to sink as low as 110.09 by 0836 GMT, 13 ticks down on the day and matching an earlier session low.
Yields on 10-year gilts rose by around 1 basis point, widening their spread over 10-year Bunds above 114 basis points, their highest level since Friday.
Comments
Comments are closed for this article.