Currency Note Sterling

Sterling strength remains strong thanks to EU sentiment

By Smart Currency May 27th, 2016

This week, sterling has been able to take full advantage of a growing belief that the UK public will vote to remain within the European Union next month, soaring across the board and pushing to a 3-month high against the euro. A quiet start to the week saw sterling trade largely sideways against its major trading partners, as investors remained nervous about the upcoming referendum, but Tuesday saw sterling gain over a cent against both the euro and US dollar as the release of a number of polls showed a growing support for the campaign to keep Britain within the EU.

Sterling continued to move in a positive fashion on Thursday, reaching a high we last saw in February against the euro and pushing close to a 2016 high versus the US dollar. Positive sterling sentiment however started to cool as Thursday progressed, despite economic growth throughout the previous quarter meeting the 0.4% target, but sterling still remains in a strong position heading into today. Should there be any surprises from the ongoing Group of Seven (G7) meetings, sterling could find some further support.

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