Sterling rose sharply on Friday, boosted by unexpectedly strong UK economic growth numbers which left it on course for its biggest one-day percentage gain against the euro in more than seven weeks. Data showed gross domestic product jumped 1.1 percent on the quarter, the strongest growth in four years and almost twice as fast as forecasts for 0.6 percent.
The data showed the economy entered the second quarter of the year on a much firmer footing than previously thought, soothing concerns that the government's planned austerity measures could put a sharp dampener on the recovery. "Whichever way you look at it those GDP numbers were very good figures," CMC Markets analyst Michael Hewson said.
"This suggests the situation with the UK economy is not as bad as previously thought and it allows a little optimism going into the second half of the year". At 1451 GMT, sterling was up 0.8 percent against the dollar at $1.5377, having earlier risen around 2 cents on the day to hit a session high of $1.5450.
The latest gains brought last week's high into view around $1.5473 - the pound's strongest level since late April. Beyond there, the April high of $1.5524 could be targeted. The euro tumbled 1.4 percent against the pound to 83.33 pence, leaving it on course for its biggest one-day drop since at least June 1. Sterling's broad gains pushed its trade-weighted index up to a 2-1/2 week high of 81.5.
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