A Grand Day for the Pound

Smashing through the doubts of a fortnight ago, the Pound crashed through U.S. Dollar this morning, hitting a massive $1.5447 – the highest it has been for three months! The Euro fared no better against Sterling either, as the Pound shot up to €1.194, marking a truly fantastic rise in strength for the British currency.

What’s more, despite constant negativity about the national debt and spending cuts, the Office of National Statistics has declared the UK economy has grown practically twice as much as was expected! Without doubt it is the revelation of these statistics that has helped rally our currency and the upcoming spending cuts will eventually take their toll. The results of the stress tests of European banks will also have a significant impact on the stability of the pound, as it will either make or break wavering confidence in the unified currency – especially in Germany and Spain.

Even so, with the expansion of gross domestic product this quarter at the highest it has been for four years, things continue to look good for the Pound. Though the worldwide clampdowns on spending are likely to reduce demand for Sterling, today’s rises have proved that things aren’t always as bad as they may seem.