According to analysts at TD Securities (TDS), the stronger UK wage growth data released on Wednesday, along with Thursday's stronger UK CPI report, support prospects for more rate hikes by the Bank of England.

Key quotes:

“This week's strong wage and CPI data show that underlying inflation pressures are more persistent than previously expected.”

“We revise our expected path for Bank Rate, and expect a final 25bps hike in June, bringing the BoE's terminal rate to 4.75% (was 4.50%).”

“Strong inflation data continues to weigh on GBP rates. We believe the hawkish price action supports entering longs in GBP on a cross-market basis.”