Currency Exchange UK

 

Pound Sterling Reaches 19 Month High

Pound Sterling Reaches 19 Month High

The pound reached its highest level in 19 months against the euro in this morning’s early trade on the London session.  Against the US dollar it also gained.

According to currency analysts, the pound received its boost because of investor confidence over the new coalition government’s determination to reduce the deficit.  Meanwhile, continued concern over the euro zone debt crisis means that the pound is more appealing than the euro.

In addition, UK industrial production data is due to be announced today, and so far the estimates are that it rose 0.4 per cent in April (month-on-month).  Manufacturing output is expected to have risen 0.5 per cent.

Strategists expect that if the data is strong, the pound will receive another boost on the market.

By before 8AM, the euro had reached 82.32 pence, having touched 82.10 earlier – its lowest level since November 2008.  

Against the US dollar, the pound rose to $1.4722, a rise of 0.1 per cent.  

Traders warned that the Conservative / Lib Dem government would have to continue to convince that their measures are effective in order for the pound to continue popularity on the market.

An emergency budget is being announced on June 22 by Chancellor George Osborne; budget cuts are the main agenda.