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Forex traders favoured the pound, with gross domestic product (GDP) expanding 1.1 per cent on the first-quarter of the year, reveals Reuters.
The performance almost doubled expectations, as even the most optimistic commentators anticipated growth of 0.6 per cent.
Total expansion of 1.6 per cent on the year adds up to the biggest increase since 2008 and may be behind investor eagerness to purchase the UK currency.
Financial data released yesterday showed robust retail sales, on the back of gains in electronics and clothing sectors, with online turnover particularly strong.
The pound rose 0.7 per cent by 10:48 BST on Thursday, as buyers covering short positions caused trading to speed up, reports the news agency.
Commenting on the business data, Vicky Redwood of Capital Economics stated: "That could be as good as it gets. The fiscal squeeze is set to knock some eight per cent off household incomes over the next few years ... Overall, spending is unlikely to remain this strong for long."
Posted by Greg Secker
