Alert: British Pound (GBP) Crusies Higher as Bank of England could raise rates next year

We have two drivers that have pushed the British pound higher on Wednesday after a poor first half of the week.

At 09:30 it was shown that the UK unemployment rate fell to 7%.

Then, at a news conference at 10:30 the Bank of England indicated that they now see the unemployment rate hitting 7% towards the end of next year.

This saw the pound sterling shoot higher:

The pound to euro exchange rate is now trading 0.65 pct higher at 1.1916, the pound dollar exchange rate is trading 0.67 pct higher at 15981.

(All quotes are taken from the wholesale spot markets; your bank will subtract a spread at their discretion when delivering a retail rate. But, an independent FX provider will guarantee to undercut your bank's offer, thus delivering up to 5% more currency. Please learn more here.)

Underpinning a more bullish tone to the Bank of England Quarterly Inflation Report was the line put forward by BoE Governor Carney that the UK "have one of the strongest recoveries in the advanced world."

Carney says you don't have to be an optimist to see the UK economy is recovering - "the glass is half full."

Reactions

"GBPUSD - still hovering around 1.60 as the Inflation Report continues - 1.6015 - 50-day sma - key resistance"

"New Two Days High: GBP/USD breaks new two days high at 1.5999, previous rate 1.5994" - Easy Forex.

"Bank of England moves the date at which it expects unemployment to fall to 7% forward from late 2016 to the final quarter of 2014" - Ed Conway at Sky News.