The release of the latest GDP figures for the UK yesterday (April 25th) helped to force up the value of sterling against the dollar.
It was up by one per cent compared with the dollar and the euro in the wake of the news the UK has avoided slipping into an unprecedented triple-dip recession.
Andy Scott, premier account manager at foreign currency exchange brokers HiFX, explained the data revealed by the Office of National Statistics – showing 0.3 per cent growth in the first quarter of the year – "seems to vindicate the Bank of England's recent upbeat claims on the economy and its outlook".
Mr Scott added business sentiment has improved, as have credit conditions, presenting positive signs for the UK economy in the coming months.
Despite the 0.3 per cent rise in GDP between January and March this year, growth has remained flat for the last 18 months at just 0.4 per cent, the data revealed.
Learn about the sterling and forex trading at City Index.