Speculation Interest Rates Elevated The Performance Of Sterling

Sterling appears solidly near high against a number of currencies on Wednesday,gained support from expectations that the Bank of England will start raising interest rates by early next year. The United Kingdom's core inflation rate higher than expectations along with the comment from David Miles who said that rising interest rates will occur in the United Kingdom the time "close enough" propping up the pound, according to traders.

Traders will await U.S. inflation data and minutes of the Fed which will be released later tonight as a guide when the Federal Reserve will probably raise interest rates. Current investors predict the Fed will take the step in September or December, while they did not predict the BoE will raise rates until around February or March next year.

According to analysts, the data provide evidence of rising inflation pressures domestic price, making the BoE is closer to a rise in interest rates. We still maintain that the pound will continue to be strengthened along with the dollar as BoE increases with the time approaching interest rate starting from early next year, he added.