The British Pound is now the strongest it has been since the Brexit vote in June 2016, according to Bank of England data, with analysts predicting further gains in the near future.
The Bank of England’s sterling exchange rate index, which measures the value of the Pound against the world’s major currencies, shows the UK Pound is now the strongest it has been since the Brexit vote and also faring better against the US Dollar than its G10 counterparts.
This week the UK pound hit a fresh two-month high against the US dollar, trading at $1.2768 after briefly reaching $1.2783 – its highest level since March 21. It also neared multi-month highs against the euro.
The pound has been supported by signs that the British economy is picking up. On Tuesday economic data showed British retail sales has bounced back in May. Let week UK inflation also fell to a three-year low of 2.3 per cent. Investors also expect the Bank of England to hold interest rates at 5.25% until at least August.
The forthcoming UK general election isn’t expected to significantly influence the pound; both the Conservatives and Labour have pledged to adhere to existing fiscal rules, hinting at a stable fiscal outlook regardless of the election outcome for the United Kingdom.
