The pound inched higher this morning, a week of generally upbeat business sentiment surveys pushing it towards recent highs around $1.2950 as Prime Minister Theresa May’s Conservatives gained more than 100 seats in local elections.
Sterling has surged almost 3 percent since May announced surprise national parliamentary elections two weeks ago, read by markets as a move that will strengthen her hand in Brexit talks over the next 18 months.
Record bets against the currency made by hedge funds and other speculative investors since last June’s Brexit referendum seem to have topped out, encouraging many to cash in by buying back the pound.
But there are still nerves. Sterling dropped briefly earlier this week after May accused EU officials of trying to interfere in an election polls show she should win by a landslide. That may bode ill for negotiations with Brussels set to begin in earnest afterwards.
With the French election on Sunday we expect the GBP/EUR to be lower on Monday if Macron wins. If you are going to need euros anytime soon. Today could be worth securing your currency. Give us a call and we can discuss your requirements in more detail.