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Sterling Reaches 7 Week High Against USD

Sterling Reaches 7 Week High Against USD

The pound rose again this Thursday, hitting a seven-week high against the US dollar.  The main reason for the pound’s increase was an opinion poll showing that the opposition Conservative party could win an overall majority at the UK general elections in May.

According to the poll, the Conservatives are now 12 points ahead of the Labour party meaning a hung parliament may not be on the cards after all.

The pound had already reached highs not seen since February on Wednesday, as a flurry of good economic data hit the headlines.  

According to the latest round of surveys, retail sales were strong in the weeks leading up to Easter, meaning that the month of March showed its best sales figures in four years.

Meanwhile the trade deficit narrowed sharply – and by more than had been predicted.  Overall this feeling that the economy is doing better than expected has helped to lift the mood among consumers and investors.

Now with the new data for the parliamentary election, perhaps the uncertainty which was hanging over the country since the start of the year may calm down.  As soon as international investors have a clearer picture for the future of Britain’s political and fiscal planning, they tend to increase their risk appetite.