Thursday, in early European session the UK sterling firmed across the board, climbing to 2-day highs against the yen and the dollar after the latest quarterly Inflation Attitudes Survey from BofE and GfK NOP showed that UK's inflation expectations increased.

UK's annual rate of inflation over the coming year is expected to rise to 2.5% compared to 2.4% estimated in November. Respondents assessed the current inflation rate at 3.4%, up from 3.2% in the previous survey period.

The pound gained to 1.6062 against the Swiss currency at 4:50 am ET Thursday. Currently, GBP/CHF pair is worth 1.6057, compared to yesterday's close of 1.6036.

At 5:20 am ET, the pound soared to a 2-day high of 1.5034 against the dollar. The Cable which closed yesterday's trading at 1.4981, is now worth 1.5026.

The pound extended its Asian session gains versus the 16-nation currency. At 5:00 am ET, the pound strengthened to 0.9102 versus the euro. At present, EUR/GBP rally is worth 0.9102. This level may be compared to 0.9117 hit at yesterday's New York session close.

The European Central Bank's monthly report, which was published today likely influenced the euro.

Rising from 135.07 against the yen hit at 2:35 am ET Thursday, the pound rose to a 2-day high of 136.01 at 5:05 am ET. The pound-yen pair that closed yesterday's trading at 135.61, is now worth 135.99.