The pound enjoyed a solid day yesterday which set it up well for Friday, after some positive news from the manufacturing sector.

This morning the dollar was at 1.8890 against the pound, while the euro stood at 1.4655.

Signs of a recovery in the manufacturing sector, after a lengthy spell of subdued figures, helped shore up sterling.

Official data from the Office for National Statistics yesterday indicated the biggest rise in output across the manufacturing sector in nearly 12 months.

With levels rising by 0.7 per cent in March - well above the 0.1 per cent rise recorded in February - some analysts are now anticipating a rate rise.

Meanwhile, today's latest data from the National Institute of Economic and Social Research suggests GDP is also on the rise, with Britain's economy growing by around 0.6 per cent in the three months to April.