Sterling has reached a post-referendum high against the US Dollar, rising to more than $1.40 during afternoon trading as the end of the shutdown of the government of the United States of America contributed little in order to lift the greenback.
The pound shortly surged to more than the $1.40 line during morning trading, prior to making more gains as the afternoon continued on.
“Buoyed by the weakness in the dollar as the US government shutdown came to an end, the pound was able to touch the $1.40 psychological barrier for the first time since 2016. Sterling was also able to strengthen against the euro, rising to a month high,” stated William Anderson Jones at a foreign exchange provider, RationalFX.
“The pound’s recent rally reflects optimism towards the chances of a softer Brexit. Despite recent economic data often proving weaker than hoped, the trend of a weak dollar coupled with apparent progress in discussions between the UK and EU ahead of the long-awaited trade talks has helped to firm the UK’s currency, and avoid the volatility seen by investors when Brexit progress was at its most uncertain.”
The index of the FTSE 100 remained relatively calm, up by 0.12 percent at around 4 p.m. Meanwhile, the S&P 500 managed to make slight gains in the United States, rising by 0.2 percent. The Dow Jones was just fractionally in the green, up by 0.7 percent.
“Interestingly the Dow couldn’t make much out of the greenback’s green gills, though even a meagre 0.1 percent rise was still enough for the ever-ascendant index to hit a fresh all-time high,” stated Connor Campbell of Spreadex.
Throughout this week, Sterling is possible to stay in the spotlight, as economic data including the gross domestic product estimate of the United Kingdom for the fourth quarter of last year is scheduled to be released on Friday.