The newsagent, Reuters, has confirmed that British Pound Sterling (£) has jumped to a 10 week high. They state a number of reasons, such as the Prime Minister’s recently dubbed “Florence Speech.”
Another reason, and perhaps the main reason, is that the “British retail sales growth hit a two-year high during the first part of this month, which bolstered bets on a Bank of England rate hike in November.”
Brexit has certainly been the main factor as to why the Pound is still relatively low, as uncertainty and a lack of clarity has continuously put a strain in business and market confidence in the Pound.
“Most of the sterling recovery over the last two weeks is probably related to a repricing of expectations on BOE policy, which means that the pound still trades with a significant Brexit risk premium,” said SEB currency strategist Richard Falkenhall.
by Berk Bektas
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