Sterling rises to its highest level in five weeks

The pound rose today to its highest level in five weeks against the US dollar and also rose to its highest level in three weeks against the euro after the jobs data in the United Kingdom and the US inflation data. The pound rose against the US dollar by 0.2% to $1.3861, and the pound rose against the single European currency by 0.1% to 85.25 pence per euro, after hitting 85.11 pence, the highest level in three weeks.

The Bank of England expects inflation to rise sharply this year and peak at 4%, which should reinforce expectations that the Bank of England is ready to tighten monetary policy faster than the European Central Bank or the US Federal Reserve.