Sterling momentarily breached €1.18 earlier this morning, a rate it has rarely surpassed in the past five years, while also strengthening to a two-week high against the US dollar.
GBP/EUR has since fallen back but is still 0.5% ahead of this time last week. GBP/USD is nearly 2% below its late-February highs but around 15% higher than last spring.
For data, it’s a fairly quiet week, but we’ll be seeing Markit services PMI tomorrow, which although expected to be below 50 is nevertheless predicted to be well above that of the Eurozone and significantly ahead of Germany and France.
