The pound hit its highest degree towards the euro for greater than two-and-a-half years yesterday.
Sterling’s surge got here because the European Central Financial institution (ECB) prepares to chop rates of interest to prop up the struggling financial system.
The pound rose as excessive as €1.2136 – simply shy of the €1.2189 it reached in March 2022. It has not been larger than that because the Brexit vote in 2016.
It got here as traders wager that the ECB will reduce charges once more tomorrow in a bid to kick-start the eurozone financial system.
In contrast, the Financial institution of England is anticipated to depart charges unchanged subsequent week.
Decrease rates of interest are inclined to weaken a foreign money so the prospect of a price reduce within the eurozone, however not the UK, has pushed the euro decrease towards the pound.
Rally: The pound rose as excessive as €1.2136 – simply shy of the €1.2189 it reached in March 2022. It has not been larger than that because the Brexit vote in 2016
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