Sterling soars past 1.35 for first time in 15 months

Sterling jumped over one percent in American trade, hitting the highest since June 24, 2016 against the dollar, following an array of data from Britain and the US. 

As of 05:11 GMT, GBP/USD rose 1.30% to 1.3573 from the opening of 1.3399, with an intraday low at 1.3382, and a 15-month peak at 1.3616. 

Earlier from the UK, External Bank of England MPC Member Gertjan Vlieghe spoke about the outlook for the UK economy and monetary policy at the Society of Business Economists’ Annual Conference, in London, where he noted its appropriate to raise rates early, with the decision expected in the next few months.

Vlieghe added that risks still hover due to Brexit, which would have a larger impact on the economy, and adding that wages have recovered relatively from the weakness earlier this year, noting that if labor indicators kept improving in the short term, it will pile on inflation in the medium term, pointing to signs of consumer spending recovery in the third quarter of this year. 

Yesterday, Bank of England policymakers voted to keep interest rates unchanged at their record lows of 0.25%, and maintain to asset purchase program at 435 billion pound, with two members voting to increase rates out of nine, while members voted unanimously for keeping the asset purchase program. 

The BoE released its monetary policy report as well, with governor Mark Carney noting that the central bank needs to calibrate interest rates in the next few months, adding that he's one of the members who support a possible rate hike, while noting that inflation has accelerated in the kingdom due to the pound's decline, which calls for an urgent policy tightening to keep a check on prices.  

Otherwise, news broke of an explosion inside one of British trains, while led to the injury of several people and was considered a terrorist attack, as Prime Minister Theresa May said that citizens shouldn't jump to the results of the investigation before they're officially released, asserting that the police is doing all it can to catch the perpetrators of the "coward" attack. 

Moving across the Atlantic, earlier US data showed retail sales down 0.2% in August, compared to a 0.3% advance in July, revised downwards from 0.6%, while analysts expected a 0.1% decline. 

Core retail sales slowed down in growth to 0.2% from 0.4%, already revised lower from 0.5%, as analysts expected a 0.5% rise, while the Empire State Manufacturing Index slipped to 24.4 in September from 24.4, passing expectations of 18.2.

US industrial production fell 0.9% in August, compared to a 0.4% rise in July, revised upwards from a 0.2% increase, while analysts expected a 0.1% rise. 

Additionally, the Capacity Utilization Rate fell to 76.1% from 76.9% in July, missing forecasts of 76.8%, while University of Michigan released its preliminary reading for the consumer sentiment survey, with a dip to 95.3 in September from 96.8 in July, revised lower from 97.6, while besting expectations of 95.1. 

The mostly disappointing data could impact policymakers' decisions at the Federal Open Market Committee meeting on September 19-20, at which Fed policymakers are expected to unveil their three year forecasts for growth, inflation, unemployment, and interest rates.