The pound has risen to its highest level against the dollar since the 2016 Brexit vote, reaching $1.438, while also hitting a 12-month high against the euro at €1.16. The boost follows increased hopes of a positive Brexit outcome and prospective interest rate increases from the Bank of England. In other economic news, retail sales rose in May for the first time in three months, according to data released by Markit.
The pound has risen to its highest level against the dollar since the 2016 Brexit vote, reaching $1.438, while also hitting a 12-month high against the euro at €1.16. The boost follows increased hopes of a positive Brexit outcome and prospective interest rate increases from the Bank of England. While tourists holidaying abroad may appreciate the stronger pound, the manufacturing sector, whose products were made more competitive during sterling's slump, is set to feel the pinch.