LONDON: Sterling gained against the dollar on Wednesday, keeping close to a seven-week peak after solid industrial output increased the chances that the UK has avoided slipping into recession. The pound also rose to a three-and-a-half year peak against the yen, as the Japanese currency continued to suffer in the wake of last week's radical monetary easing measures announced by the Bank of Japan. The pound was up 0.1 percent at $1.5330, near a peak of $1.5364 hit on Friday when poor US jobs data knocked the dollar. Charts showed the pound held above support at the 55-day moving average at $1.5323, while traders reported bids above $1.5300. "The pound has some positive economic data to lean on," said Nawaz Ali, market analyst at Western Union Business Solutions. "It's probably safe to bet on no recession, but you can't rule it out." However, he said the pound's gains would be limited until first quarter gross domestic product data was released later this month, keeping it in a $1.51-$1.54 range. Figures on Tuesday showed February's industrial output rose by 1.0 percent month-on-month, prompting the National Institute of Economic and Social Research to forecast the UK will post growth of 0.1 percent in the first quarter and avoid recession. Against the yen, the pound rose as high as 152.61 yen , its highest since October 2009. Analysts were wary, however, because other UK data released on Tuesday showed the country's trade deficit widened much more than expected. "Yesterday's disappointing UK trade numbers are yet another reminder that sterling needs to remain weaker for longer to induce the much-needed rebalancing of the economy towards more exports," analysts at Societe Generale said in a note.

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