Sterling up on encouraging industrial data

<p>Industrial data has led to solid gains for sterling.</p>

Sterling's value against the dollar has increased this week on the back of positive industrial data for the UK.

Jeremy Stretch, head of currency strategy at CIBC World Markets, stated investors ought not to get "hung up" on the idea of a triple-dip recession affecting the country in the coming months.

Speaking to Reuters, he explained the latest industrial data for the UK is "encouraging" and this has helped to push sterling to a session high of $1.5326.

This is close to a six-week high of $1.5364 and the pound would appear to be in a solid state.

"That's providing a little bit of support for sterling, although any rallies up into the $1.5380 area are worth fading (selling into)," said Mr Stretch.

Ian Stannard, head of European currency strategy at Morgan Stanley in London, recently pointed out in an interview with Bloomberg that the pound is the Bank of England's main mechanism for transmission.

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