Pound’s strong run continues with push above $1.43

Latest news

    Pound coinsImage copyright Getty Images

    The pound has continued its recent strong run against the dollar pushing firmly above $1.43.

    It is the seventh session in a row that the pound has made gains against the US currency.

    The strong run means that, among the G10 group of rich nations, the UK has the best-performing currency this year.

    Traders say the prospect of higher UK interest rates has made the pound more attractive while the dollar has been hit by fears of trade disputes.

    The pound started the week with a gain of almost a cent to $1.4323, while against the euro it was 0.2% higher at €1.1569.

    Following the vote to leave the European Union in June 2016 the pound sank, hitting $1.2068 in January of last year.

    Since then it has made a comeback.

    Jane Foley, a currency strategist at Rabobank, said the recent strong run can be dated back to September 2017 when it became clear the Bank of England was ready to raise interest rates.

    In November, the Bank increased the cost of borrowing for the first time in a decade – from 0.25% to 0.5%.

    And in February the pound’s momentum was maintained when the Bank hinted at an accelerated pace of interest rate increases.

    Most analysts expect it to raise interest rates again in May.

    According to Ms Foley, any indication about what happens to interest rates after that is the key to the pound’s next move.

    Some clues may come from some important economic data this week.

    On Tuesday the latest UK unemployment and wage data is released and Wednesday brings the latest inflation figures.

    Data watch

    Ms Foley said Tuesday’s data on earnings growth should be the “most interesting”, as weak wage growth has been one reason why the Bank of England has been slow to raise rates.

    If the data remains weak then the Bank may not feel pressure to make another rate increase after May, she said.

    Another big factor governing the pound’s progress is the progress of Brexit talks. Trade negotiations start again this week and will be closely monitored.

    If those talks go badly then the pound could be undermined.

    View the original article: http://www.bbc.co.uk/news/business-43786232

    http://www.bbc.co.uk/news/business-43786232

    In the same category are

    2018 Riba Stirling shortlist in pictures Image copyright RIBA The six buildings to be shortlisted for the 2018 Riba Stirling prize have been announced.Those nominated for the UK's best new ...
    Australia overtaking UK for overseas students Image copyright Getty Images Image caption Students arriving in Melbourne - ranked this year as one of the world's best student cities Australia i...
    Delays in radiology results ‘affecting patient care’ Image copyright Getty Images The regulator of heath care services in England is calling for a limit on how long it takes to report the results of pa...
    Private firms cash in on over-stretched NHS Image copyright Getty Images Under-pressure NHS services in England are spending over £1bn a year buying care from outside the NHS because they are ...
    Publishers warn of Brexit threat to record exports Image copyright Getty Images The UK publishing industry has warned that Brexit could damage its record-breaking export business.The boss of the Publ...
    Military personnel based in Scotland compensated for tax rises Image copyright PA Image caption The majority of military personnel in Scotland are facing higher income tax bills The UK government is to compens...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.