Sterling hits 3-month high on strong service data

Sterling rose to a fresh three-month high versus the dollar this morning after UK services data came in above expectations.

It hit $1.6279 earlier on news the services sector expanded at the fastest pace in eight months in January to rebound after snow depressed December's data. The purchasing managers' survey from Markit/CIPS showed UK Services PMI for last month was 54.7, against an expectation of 51. It also showed a record jump in input cost inflation in the services sector, which is likely to worry Bank of England policymakers who hold their rate-setting meeting next week. Lee Hardman, currency strategist at BTM-UFJ, told Reuters sterling was drifting higher in line with early expectations of BoE t...