Pound Hits Highest Against The Euro Since January 23rd, or +7 Months
Sterling positively flies!
The pound has reached 1.1926 against the euro lately, the highest since January 23rd, or more than 7 months (as at 11 September 2013).
By contrast, sterling was as low as 1.1403 on August 1st. Hence, it’s since gained by +4.59%, or more than 5 cents.
A £250,000 transfer would be worth €13,075 more today, 11th September, than on August 1st.
(Please bear in mind, these are the interbank rates at the time of writing. This means the exchange rate may have changed since then.)
Pound could rise further against the euro
Moreover, sterling could soon reach 1.20 against the euro, if not higher. Here’s why:
1. Economic activity in the UK rose at a faster pace than anywhere else in the developed world in August, according to Markit.
This could strengthen sterling, because it suggests the UK economy is bouncing back strongly, at last.
2. UK unemployment unexpectedly fell to 7.7% in August, with 24,000 more people in work.
This could lift the pound, because it also sends a strong signal that the UK economy is recovering.
3. With the UK economy recovering, the Bank of England may need to raise interest rates before their 2016 forecast.
This may give sterling a boost, because the higher UK interest rates go, the more attractive the pound becomes to investors.
Hence, look for the pound to rise further against the euro!