We’ve seen a huge surge for Sterling this afternoon, with GBP/EUR breaking through the €1.14 barrier and GBP/USD breaking through $1.30, with both pairs continuing to rise above these levels.
It’s a very positive move for the Pound, that was as low as €1.1173 against the Euro just a few days ago.
Why has the Pound risen against Euro and US Dollar?
With no UK data of note it’s other factors causing the move. Earlier today we had much worse than expected Inflation and Retail Sales data from the USA. Initially this weakened the USD and strengthened the Euro, but it seems that following the poor US data, increased risk appetite has resulted in investors deciding that Sterling is the best place to put their funds ahead of the weekend break. This has helped push the Pound higher against other major currencies.
A spike like this is often short-lived. If you need to buy currency with Sterling, and want to lock in the rate, get in touch today for a free quote. We offer a ‘Forward Contract’ that allows you to freeze the current rate for up to 2 years into the future, by lodging 10% of the total you want to convert.