The pound strengthened the most in a week against the euro as U.K. industrial production expanded in March and the Bank of England refrained from adding stimulus measures that tend to debase a currency.
Sterling gained for the first time in three days versus the shared currency as the Bank of England maintained its asset-purchase target, known as quantitative easing, at 375 billion pounds ($581 billion) and kept interest rates at a record low. The central bank is due to release its latest economic analysis and inflation projections on May 15. The pound fell against the dollar after the number of Americans filing claims for jobless benefits unexpectedly dropped.
“Industrial production was better than expected and that caused a bit of a bounce higher” in the pound, said Kathleen Brooks, research director in London at Forex.com, a unit of online currency-trading company Gain Capital Holdings Inc. (GCAP) “Much more important for the pound is going to be next week’s inflation report.”