Sterling recovers against the Euro for now
Sterling has continued its fine recovery against the Euro this week, hitting the highest level since mid-August and representing one of the best times in 18-months. We have mentioned before that forays above 1.17 mid-market tend to be short-lived, so now would be a good time to exchange if anyone has this currency pair to trade.
Today, we have seen the safe-haven currencies ($, JPY, CHF) gain in value by as much as 0.5% on the back of recent energy prices. I have to say it's interesting to see that the € hasn't gained on the £ though, as prices have rocketed again over the last 48-hours. Previously, £-€ rates fell each time a spike was realised on the energy market. But, the crisis is affecting Europe more than it is the UK at the moment.
Prices have risen a whooping 350% in Europe & 300% in the UK so far this year, after stockpiles are at their lowest in more than 10-years. There has been a 60% and 40% jump respectively in just 48-hours. The longer the energy crisis goes on for, the higher in value safe haven currencies will go and the longer £ will be pegged down.