STERLING jumped to its highest level in eight months yesterday as the UK posted another set of impressive labour market numbers.
The pound was printing above $1.58 last night, having climbed from $1.49 since early in July.
The rise has been steady across the last eight weeks, yet was boosted yesterday by a 0.1 per cent fall in the UK’s unemployment rate to 7.7 per cent. A seven and a half month high was also reached against the euro, as sterling beat €1.19 in the day’s trading.
The currency also struck a four-year high against the yen, while the trade-weighted sterling index rose to an eight-month high of 82.6, Bank of England data showed.
And CMC Markets Michael Hewson says there may be more to come. “I think it’ll go to $1.60 no question,” Hewson told City A.M., adding that a stronger pound could be a useful guard against inflation if oil prices rise even further.