Sterling ‘made broad gains’ following services data

<p>The release of services data boosted sterling.</p>

Sterling got a major boost from the release of UK services data yesterday (June 5th) and was up strongly against both the euro and the dollar.

Andy Scott, premier account manager at foreign currency exchange brokers HiFX, noted the figures were better than expected and show the UK's economy appears to be "holding its own" even though much of the eurozone is still struggling in recession.

He pointed out it is likely sterling continues to perform well against the single currency in the coming weeks and months, but noted the new governor of the Bank of England could have an impact on the pound.

Mark Carney – currently in charge of the Bank of Canada – is set to take over the role from Sir Mervyn King and Mr Scott warned that the Bank of England may try to "turbo charge" the slow economic growth seen in the first quarter of the year.

"This unknown will continue to limit sterling's upside due the risk of sterling dropping due to such central bank action," he said.

Sterling rose 0.4 per cent to $1.5372 yesterday, as well as being up by 0.4 per cent to €1.1758.

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