There’s certainly been a bump to sterling over the past few weeks. The currency was trading well against the dollar, and up nearly two cent against the euro. As we went to press £1 was close to €1.17 or conversely 85.5p buys £1 one the FX markets.
Since then sterling has dropped off a bit to just over €1.15.
UK consumer confidence rose sharply in November which was one of the main drivers in the buoyant currency. Hopes of a strong festive retail period ahead coming up to Christmas seemed to move expectations on the currency markets.
Basically though it is down to interest rates, with the Bank of England holding off on more rises, while the ECB kept raising theirs.
Recessionary clouds are gathering pace in the eurozone, with the powerhouse German economy facing some troubling signs - hence a weakening euro.
