THE POUND has risen against the euro today as sterling reached a four year high. It also retained the “upper hand” against the dollar, experts have said, but that may not last into today.
The pound has boomed this week against the euro and succeeded in hitting a six month high as optimism concerning a Brexit deal helps sterling “retain the upper hand against the majors.”
A number of analysts have begun to make hawkish bets on a Brexit deal sparking a substantial rally in the pound.
The pound is currently trading at €1.148 against the euro, according to Bloomberg.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“The pound retained the upper hand against the majors on Wednesday, holding above €1.145 against the euro and advancing all the way to $1.315 against a broadly weaker US dollar.
“However, if today’s economic bulletin from the European Central Bank (ECB) proves upbeat it could give the euro a little boost, taking the shine of GBP/EUR in the process.”
"Given these developments, we recommend tactical GBP longs vs. EUR this week," says Meera Chandan, a strategist with J.P. Morgan in London. A 'long' on the Pound is trader talk for buying the Pound and selling the Euro.
The call by J.P. Morgan comes amidst reports U.K. cabinet ministers are told to be at the ready for an unscheduled meeting in coming days in order to be briefed on the shape of the Brexit Withdrawal Agreement the E.U. and U.K. are ready to sign up to.
The BBC's Laura Kuenssberg says ministers were told at a cabinet meeting held on November 06 to "be ready for another Cabinet meeting, maybe even at end of this week, because there might be enough movement by then to push button on a deal."