Investing.com - The pound looked to finish the year on a high as it climbed higher against most major currencies on the final day of trading of 2017.
At 14:00 GMT, GBP/USD surged to a high last seen on 1 December. Lifting 0.65%, cable was 1.3524, comfortably above the $1.35 level.
Data released from the Confederation of British Industry (CBI) on Thursday reported an uptick in in growth in the fourth quarter. The growth indicator increased by 19, a marked improvement in the three months to November reading of +6.
The survey polled over 600 UK businesses in a cross section of industries and showed growth throughout all sectors. Growth is not expected to remain as buoyant into the new year.
Inflation reached 3.1% in November, and industries leaders expect this to impact consumers and spending power.
The pound enjoyed gains against a weaker dollar, down at its lowest level since the end of September.
The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six major currencies, was down 0.35% to 92.02. In 2017, the index fell nearly 10%.
The euro was down against the pound, despite data showing better than expected German inflation figures. At 1.6%, German inflation peaked to a 2-year high.
European politics re-emerged as an FX influence. Italy’s President dissolved parliament on Thursday. The general election has been called for early March 2018. The rise of the populist 5-Star party in Italy is a potential headache for the euro-zone.
EUR/GBP was down 0.22% to 0.8869. The single currency gained 0.38% on the dollar, EUR/USD was 1.1987.
Sterling edged higher against the safe haven currencies, with GBP/JPY up 0.25% to 152.12. GBP/CHF was 1.3201, up 0.33%.
The pound also made modest gains against the commodity currencies. GBP/AUD jumped 0.34% to 1.7300. GBP/NZD increased 0.15% to 1.8991.
Greater gains were made against the Canadian dollar, with GBP/CAD up 0.43% tp 1.6959.
Investors will be looking ahead to 2018, when Phase 2 of the Brexit negotiations will begin.
Trading volumes are expected to remain thin ahead of the New Year’s Day holiday weekend.