Pound to dollar exchange rate: Sterling hits HIGHEST level since Brexit vote

Marco Green
January 13, 2018

The Dutch finance minister is saying that there is no new agreement between Spain, Netherlands on British departure from EU.

The remaining European Union member states continued to stand united against Britain, with French president Emmanuel Macron warning countries to remain disciplined in order to protect all of their interests.

The pound traded up more than one percent on the day, pushing to as high as $1.37 GBP=D3and in the process hitting its highest level since June 24, 2016, when the pound plunged after Britain voted to quit the EU.

The currency had been trading at about $1.50 before the result of the referendum became clear.

Mizuho analyst Neil Jones said the Bloomberg report, if true, was less significant than the sterling rally suggested. Just because two of the 27 members say this, it doesn't mean a softer Brexit will happen.

UK assets are now looking expensive
Pound to dollar exchange rate: Sterling hits HIGHEST level since Brexit vote

"Even as someone who is long the pound, I'm sceptical this is a game changer at this stage", he said.

Neil Wilson at ETX Capital said: "Although the comments came from just two ministers who don't necessarily speak for the Barnier team as such, there is a sense that the direction of travel for the United Kingdom with regards Brexit is a lot more positive than it was prior to December".

This marked the highest monthly rate in some 11 months, with a surge in the cost of shelter, medical care, automobiles and motor insurance driving prices higher - but it also proved pertinent in that it effectively raises the 2018 rate hike prospects of the US Federal Reserve.

Despite not making too much headway against the Euro, Sterling did manage a positive run against the US Dollar. Next week's primary focus will be December's Consumer Price Index report and Retail Sales data, which give a detailed insight into consumer spending and household income levels.

Other reports by Click Lancashire

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