Following the UK prime minister’s address to the confederation of British industry (CBI) this morning, sterling has enjoyed its best day against the Euro since the Brexit vote in June. It closed at 84.9p:€1, having been trading at 86.2/€1 at 11am this morning, which is its strongest position since mid-September.

Sterling has now recovered the value it lost ahead of the hard Brexit speech by the British prime minister ahead of her party conference. Her tone in today’s CBI’s speech has been judged more conciliatory, with a transition arrangement and low corporation tax promises triggering favourable market reaction on sterling. It also comes on the back of better-than-expected UK indices at the end of last week, with unemployment falling to an 11-year low.

Events elsewhere are also combining to make sterling look a better bet to currency traders than anytime over the past two months. The US has had its election, with the dollar expiring the Brexit effect on sterling, while in the Eurozone, forthcoming elections and consequent political uncertainty in the big two economies of France and Germany have combined to make the Euro less attractive.

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