Sterling Close to 10-Week High Versus Euro, as UK Economy Advances – 2 May 2014
Sterling continues to climb against the euro!
The pound has touched 1.2199 versus the common currency recently, close to its highest in 10 weeks, or since February 18th.
By contrast, the pound was at just 1.1904 on March 18th. Hence, it’s since climbed +2.48%, or almost 3 cents.
A £250,000 transfer to the UK would hence be worth +€7,375 more today than on March 18th.
(Please bear in mind, these are the interbank rates at the time of writing. This means the exchange rate may have changed since then.)
Sterling may continue to climb, as UK bounces back
Furthermore, the pound could rise higher yet against the euro in May. Here’s why:
1. The UK’s manufacturing sector expanded at its strongest pace in 5 months in April.
This may lift the pound, because it suggests that the UK’s recovery doesn’t just depend on consumer spending.
2. The UK economy grew +3.1% between January and March compared to a year ago, the most in 6 years.
This could boost the pound, as it tells us the UK is growing faster than any other major country right now.
3. UK house prices jumped +10.9% in April compared to a year ago, the most since before the financial crash.
This may strengthen sterling, as it makes the Bank of England likelier to hike interest rates.
So, the pound could climb further against the euro yet!