Unemployment figures and favourable minutes from the last Bank of England meeting spurred another day of recovery for sterling, putting some daylight between its recent lows against the dollar and euro.

The monthly unemployment figures from February of a decrease of 32K revealed the fastest rate of decline in over a decade. While the January figure was revised backwards, it was generally a positive reading, sparking some flow back into the battle weary pound.

Further support for the pound arrived in the Bank of England minutes, which showed that the committee were beginning to worry about the constant threat of inflation following recent relatively hawkish figures. The fear of further falls for sterling pushing inflation higher saw the MPC break rank from the usual welcoming tone regarding sterling’s decline.

The euro’s cause was dampened after German Chancellor Angela Merkel announced that Greece should use funds from the International Monetary Fund (IMF) as a source of aid if needed, pouring cold water on recent talks that a euro centric agreement will be reached.

Japanese authorities were not sitting idle themselves, doubling their loan program to ¥20,000bn. The program, aimed at countering inflation and boosting credit development within the troubled nation, sent the Yen lower and helped drag the dollar along with it.

Today public net sector borrowing figures (9:30) may disrupt sterling’s momentum, with Euro trade balance (10:00) and US CPI inflation figures (12:30) providing a balanced mix of data