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Sterling rose to a day's high of $1.6890 after the data from $1.6854 beforehand, up 0.15 percent on the day. The euro also weakened against the pound to a day's low of 79.330 pence.
British government bond yields rose and gilt futures extended earlier losses by around 10 ticks to hit a session low of 111.20, 26 ticks down on the day.
The pan-European FTSEurofirst 300 index hit a session high after the data and was trading 0.8 percent higher at 1,340.47.