Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
Sterling regains some shine
The pound has perked up. Last week it jumped to $1.43, the highest level since the referendum on leaving the EU.
(Image credit: This content is subject to copyright.)
The pound has perked up. Last week it jumped to $1.43, the highest level since the referendum on leaving the EU (before which it hit $1.49). On a trade-weighted basis it has strengthened to a level last seen in late June 2016.
The recovery is partly a question of dollar weakness, but investors have also "become more bullish on the pound independently", says Jemima Kelly on Reuters. Speculators' bets on further sterling gains are at a three-and-a-half-year high. Unexpectedly strong recent data has brought forward the prospect of further interest-rate rises. Employment has climbed to a new record, while GDP grew by 0.5% in the final quarter of 2017.
There is also a growing sense that Brexit may not be that bad after all. There is good news for equity investors too, says Lex in the Financial Times. The FTSE 100's post-referendum jump was based on a weaker pound boosting the value of overseas earnings; the blue chips make over 70% of their sales abroad. But the strong equity-market rally shouldn't melt away just because sterling has recovered.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Higher global growth and rising commodity prices are offsetting the trend, while sterling hasn't bounced against every currency: it is still 12% down against the euro since the vote.
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
