The British Pound Sterling has soared higher against the Euro. GBP traded to its best exchange rate against the EUR since mid-September with 1.18 on the mid markets being achieved in the hours following the Autumn Statement.
However, the initial tests of 1.18 have been brief affairs with the pair slipping below here soon after confirming there appears to be a strong offer on Sterling in this level. The November rally has been quite impressive with GBP/EUR recovering from lows at 1.1050.
The pair has since broken above the 100 day moving average in a sign that momentum is shifting towards Sterling across all the major timeframes and advocating for an extension of the move higher, PoundSterlingLive reports.
Karen Jones at Commerzbank today tells clients the pair may still reach the 50% Fibonacci retracement of the move down that started in May at 1.1972, above which lies the 1.1994 September high.
Jones is looking for some kind of stabilisation to set in over the short-term and any Sterling weakness is expected to be weak.
As Sterling heads above 1.18 on the mid market, we see international payment rates on bank accounts edge towards the 1.1390-1.1480 region while independent specialists are quoting in the 1.16-1.1680 zone.
“Overall Sterling is now at a 2 month peak against a basket of currencies, suggesting investors weren’t particularly bothered by the flaccid future growth, expanding deficit and rising national debt outlined by Philip Hammond and the OBR during yesterday’s Autumn Statement,” says Connor Campbell at Spreadex.
Sterling was the second best-performing currency in the G10 after the US Dollar over the course of the past 24 hours despite the horrid GDP downgrades and borrowing upgrades in the Autumn Statement.
