The British pound rallied against the euro and the US dollar Tuesday following figures showed the UK economy accelerated in the second quarter.
According to the Office for National Statistics, the gross domestic product increased 0.7% from 0.4% in the previous quarter.
Sterling stood at 70.86 pence per euro from 71.22 pence before the release of data. Versus the greenback, the currency traded at $1.5618 from $1.5535 earlier.
As steady growth leads to higher living standards and woes about Greece starts to diminish, the pressure for BOE Governor Mark Carney “to hike interest rates is increasing by the month,” said Dennis de Jong, Managing Director at UFX.com.
The Bank of England is slated to meet next week, but traders do not expect the central bank no increase rates.
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