The Pound rises handsomely

GBP v EUR hits second highest level since Christmas last year..

It has been a morning of selling Sterling for us so far today as the currency breaks key resistance barriers. £-$ has gone from trading at a nice 2-month high yesterday, to storming to a 10-month high today with a gain of over 1% in 24-hours. This means cable has now increased by 4% in the last month, representing an extra $7,000 on a £100,000 exchange..

£-€ is closing in on a 3% jump in the last 2-months, which represents an extra €3,200 on a £100,000 exchange. Bear in mind that this pair was expected to be trading around 1.10 mid-market levels at this point by most analysts, so this should be a buy for many.

Historically, April is one of the better months for the Pound. An out-performance can happen because of the new fiscal year starting, which sees corporate repatriation and hedging flows in GBP's favour. April is a month in which market conditions face a bit of a reset and where investors are comfortable taking on risks. This allows a high-beta currency like Sterling to flourish.