Pound rises to its highest level since the Brexit referendum
- On Thursday, The Bank's Monetary Policy Committee faces an interest rate decision, with Sterling hitting 86.4, its highest level since the first quarter of 2016.
- Sterling has responded strongly to Brexit developments and political uncertainty in recent years; traders now view the currency differently due to political stability and rapprochement with the European Union.
- Jim, an economist and former Treasury minister, said "I'm not surprised. People were, and to a lesser extent, are, underestimating the improving momentum in the UK." A stronger pound helps Britons on holidays and imports.
- While interest rates are expected to rise, scrutiny will focus on vote numbers and guidance from Governor Bailey, as markets price in almost four rate hikes despite analyst skepticism about such an aggressive path.
- Any pushback against consecutive future rate hikes could significantly impact Sterling, according to George Vessey, macro strategist at Convera, while the two-year gilt yield sits just under 4.73 per cent as a proxy for expectations.
13 Articles
13 Articles
Pound rises to post-Brexit high: What it means for your holidays, savings and investments
Holidaymakers could get more spending money and shoppers could benefit from lower import costs as the pound strengthens. But people bringing money back from abroad could receive fewer pounds when exchanging their cash.Speaking to GB News, Prem Raja, head of trading floor at Currencies 4 You, said better exchange rates could help consumers if businesses passed on savings.His comment come after figures today revealed that Pound sterling has reache…
The British pound has climbed to its strongest level since the referendum on the United Kingdom's departure from the European Union in June 2016. The expected increase in interest rates, a surprisingly resilient economy and greater political stability are helping. Investors are also positive about the gradual rapprochement between London and Brussels, which is expected to bring easier travel and study for young people and the removal of some tra…
The pound sterling is scoring at the highest level since the Brexit referendum against a major currency basket, reaching 86.4 points in the Bank of England's effective exchange rate, reported today to the BBC.
On Wednesday, the pound reached its highest level since the Brexit referendum. The last few weeks have been record highs for the British currency.
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