Sterling reversed the trend of the last few weeks and jumped to a three-week high against the dollar on Thursday after comments the previous day from a Bank of England policymaker that quantitative easing was working effectively.

Monetary policy committee member Paul Fisher told the Financial Times that the asset purchase programme was “having the scale and speed of impact that we would have hoped for when we started in March”  Sterling initially dipped on Wednesday afternoon, but reacted strongly to these comments on Thursday morning and jumped 1.8% to $1.6267 against the dollar, striking a three-week. The pound made gains of 1.8% to €1.0902 against the euro and rose 3.2% to 147.52 JPY.

The comments released on Wednesday by Fisher on an internet blog encouraged investors to buy back the pound as sentiment for potently higher yielding currencies grew. These comments are an early sign to many that the UK Economy is starting to stabilise towards the path of growth. Over recent months the pound has continued to suffer on a downward trend as lack of verbal support from announcements made by key players in the government and banking sector.

Yesterday, the US saw an improvement in the consumer price index released a figure of 0.2% above the predicted consensus of 0.1%. The Consumer Price Index Ex Food & Energy released by the US Department of Labor is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and service.

Today is quiet for data releases from the UK so we expect to see low levels of volatility, however Canada has the release of there Consumer price Index along with the U.S Net Long-term TIC Flows which show the in and out flows of financial resources in the United States

At 9.00am the pound was up further at $1.6336, €1.0947, 11.99 ZAR, 11.34 SEK, 148.705 JPY and AU$1.7718 whilst the euro remained at $1.4918 against a pressured dollar.

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