Sterling climbs past 1.38 against dollar

Sterling rose for the fifth straight session in a row to the highest since June 24, 2016 against the dollar, following earlier data and developments from Britain and the US, including Bank of England MPC Member Michael Saunders' speech, at which he asserted the need to increase interest rates. 

As of 05:06 GMT, GBP/USD rose 0.26% to 1.3828 from the opening of 1.3792, with an intraday low at 1.3757, and a 19-month high at 1.3845. 

Earlier from Britain, external BOE MPC Member Michael Saunders Saunders spoke at the Financial Intermediary and Broker Association inaugural conference, in London, where he pointed to the need to tighten the monetary policy in a gradual manner. 

Saunders also expected the UK unemployment rate to drop to 4% in 2018, while cautioning that UK economic outlook in the near term isn't very good, but isn't also bad, with wages expected to clock in a 3% increase in 2018. 

Otherwise, earlier US data showed industrial production rose 0.9% in December, compared to a 0.1% dip in November, revised from a 0.2% increase, while analysts expected a 0.4% increase. 

The Capacity Utilization Rate rose to 77.9% in December from 77.2% in November, revised from 77.1%, while analysts expected 77.3%. 

Now investors await the Beige Book, which derives its importance from the fact that it's issued two weeks before the Federal Open Market Committee's meeting, and upon which policymakers depend to make policy decisions.