Britain's pound climbed over 0.5% against the dollar today after data showed the economy picking up speed, bolstering expectations that the Bank of England will raise interest rates next week. 

The UK's quarterly gross domestic product growth rose to 0.4% in the third quarter from 0.3% in the second, beating expectations for 0.3% growth. 

The pound climbed as high as $1.3203 after the numbers from $1.3124 beforehand, leaving the currency up 0.5% on the day. 

Against the euro, sterling strengthened to 89.18 pence, also up 0.5%

The Bank of England is widely expected to return rates to 0.5% from 0.25% after its policy meeting next week, the first hike in borrowing costs in over a decade, though there are doubts about whether that will be the start of a steady tightening cycle.

Concerns about the progress of talks on Britain's departure from the European Union continue to weigh on the pound, with businesses and investors keen to see a framework in place soon for the two-year transitional period after Britain formally leaves in March 2019. 

EU Brexit negotiator Michel Barnier said yesterday that Britain must accept the full economic and legal status quo in a post-Brexit transition period and should expect no tailor-made terms on trade in its future relationship. 

Brexit minister David Davis said toady that Britain wants an outline agreement with the EU on the transitional arrangements by the first quarter of 2018.