A sense of optimism regarding the UK economy and the hopes pinned on a favorable outcome for the Brexit negotiations have helped the Pound Sterling strengthen to a level not seen since the days before the EU referendum in late June 2016. Analysts say the Pound is poised to record its best month in nine years versus the US Dollar, having experienced a 6% climb since the beginning of this year. While previous pushes for the Pound were attributed to general dollar weakness, analysts are keen to point out that investors are now looking at the Pound solely on its own merits. That is evidenced from last Friday’s data which showed that net-long Sterling positions had risen to a 3½ year peak last week.
As reported at 11:00 am (GMT) in London, the GBP/USD was trading at $1.4263, a gain of 0.17%; the pair earlier hit a session peak of $1.4329 while the low is at $1.4212. The EUR/GBP is trading at 0.87035 Pence, down 0.12414%; the pair has ranged from a session trough of 0.86857 Pence to a peak of 0.87209 Pence.
Brexit Negotiations Still Weigh
News from the Eurozone has also helped to keep the Pound appreciating. Last weekend, Emmanuel Macron, the President of France, pointedly said that Britain could certainly obtain a well-tailored deal to trade with the EU. A “favorable deal” is one of Theresa May’s key objectives and, though there are doubts that the Prime Minister’s current Brexit proposal will be accepted, most insiders believe the end result will still be a favorable one. Late last year, May was able to secure a deal to move the discussion forward to trade and transition.