Pound starts the week stronger

Published: 16 Feb at 5 AM Tags: Euro, Dollar,

Sterling has managed a six-year high although trading has been thin due to Presidents’ Day holiday in the US and ahead of Lunar New Year holidays across much of Asia later in the week. The pound managed to scale a high of $1.5435 in early trading after trading at $1.5407 on Friday.

Sterling has been garnering favour with investors after the Bank of England hinted that interest rates could soon rise. Central bank policy maker Martin Weale suggested that a rate rise could be in place sooner than many investors are expecting because of inflation.

The euro is currently flat at $1.1400 as the focus remains firmly on what is happening in Greece. It is likely that the single currency will come under increased pressure whatever the outcome. If Greece does leave the eurozone will become more unstable and this will be negative for the euro.

The euro is down slightly against the yen at 135.00. Last Thursday the currency managed to creep as high as 136.70. The dollar has also fallen against its Japanese rival to 118.51 yen.

The Canadian dollar is benefitting from an apparent bottoming out of the slump in oil prices. The Australian dollar is also a tad firmer as Brent crude rose above the $60 per barrel mark.