Will Sterling Continue to Strengthen Against the US Dollar?

Investors are becoming more bullish on the pound, leading contrarians to row back their positivity. Does the currency have further to go?

David Brenchley 27 March, 2018 | 10:36AM

new five pound notes, sterling, foreign exchange, us dollar, currency

Last week’s announcement of a Brexit transition deal between the UK and European Union was seen as a seminal moment in negotiations by many. As expected, sterling responded positively, jumping 1% to 1.4141 against the US dollar immediately after the news.

It strengthened further to trade at 1.4208 on Monday afternoon. Now, some commentators think the pound’s winning run will continue, with some as bullish as suggesting 1.48. However, there was a note of caution on taking Brexit progress too positively from one quarter.

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About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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