Excel Currencies Blog

The Pound elevated by the UK bond market..

Sterling v Euro is currently trading at an 11-month high with the Pound versus Dollar pushing to a 9-month high. A slow and steady climb this week by GBP has largely gone unnoticed until today. The UK bond market jumped after comments by BoE Governor Bailey insisting it's too premature to give a date on when interest rates will start to come down. 

With UK interest rates expected to go higher for longer, UK bond yields will also outperform and so an influx of foreign investment is expected into the country (good news for the Pound). This week was a free-hit type, which of late seems to always go in the favour of GBP, proving there is a positive bias towards the currency at present. 

In just 6-weeks, £-€ has gained €2,200 on a £100,000 exchange with the £-$ up $4,300 on a £100,000 exchange. Not bad if anyone has decided to wait or hedge on their upcoming transfers, but how much further can it realistically go near-term is the concern..