Friday, 11 November 2016

Pound helped by Trump effect

The pound is 6 per cent up against the euro in the past few weeks, at €1.16 and it's up against the dollar as well at $1.26.

It's still sharply down since the Brexit vote, but first the court decision that the government must get parliament to trigger Brexit and now the Trump victory have caused a little bounce.

Here's some comment from Rupert Lee-Browne, Chief Executive of currency firm Caxton FX.

"For holidaymakers it's a little bit of good news.
This is definitely a rebound after some very positive comments from President-elect Trump.
He's indicated he wants America the UK to continue with the special relationship and that has lifted spirits in the currency market.
There's also an uplift from talk about higher inflation in the UK which might lead to higher interest rates and there may be room for the pound to move higher.
But there is always the worry about Brexit and that could bring sterling down going forward."

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