Britain’s pound is storming ahead with 1.4 per cent week-on-week climbs against the US dollar, euro, and Japanese yen.
The news comes as markets look forward to a period of UK stability and growth ahead of the Brexit process.
Britain has been arguing for free trade and free access to markets in a bid to promote competition but the EU is digging its heels in and refusing to clarify the situation which is likely to have a devastating impact on its performance.
The Conservative Party is polling at 23 percentage points in a Ipsos MORI survey boosted.
Cable has tested 1.2900, bringing last week’s six-month peak at 1.2906 back into view, says XE.com.
The initial market reaction to Emmanuel Macron is wearing thin already
The pound has been marching ahead this week after Emmanuel Macron faced a backlash from businesses in his native France and Theresa May hosted EU chief Jean-Claude Juncker for Brexit talks at Downing Street.
The pound is trading near its highest level since Sept 2016 against the dollar and it is also up against the Euro as Brexit talks dominate the political landscape.
It is also reacting to news that ECB chief Mario Draghi announced he had no plans to change course on his QE position and refused to raise rates.
The pound rallied to $1.29 today and €1.186 versus the euro as the common currency faces corrections over its position on French election candidate Emmanuel Macron.
Mr Macron is facing a backlash in his native France and was yesterday snubbed by voters when he visited a factory.
The news comes as under-fire European Commission president Jean-Claude Juncker flew to London to meet Theresa May alongside EU’s chief Brexit negotiator Michel Barnier.
The EU is facing a major backlash after it mooted it plans to overhaul capital markets.
Traders are talking about taking short positions on the Euro
En Marche! candidate Mr Macron is having problems with his campaign after one of his supporters described the sacking of workers at a Whirlpool factory as an “anecdote” raising concerns he is not in tune with the large majority of the public.
The economist Jacques Attali was slated after he appeared to brush off the fate of the employees in Amiens.
Twitter eruptued in fury after Mr Attali appeared on television with supporters of Mr Macron’s campaign telling him to “keep quiet!”
— Godi Financial (@GodiFinancial) April 27, 2017
The pound is surging against the euro and the dollar after UK Prime Minister Theresa May was filmed laughing alongside European Union chief of staff, Martin Selmayr, in the corridor of Number 10.
It came at the same time Jean Claude Juncker and Brexit negotiator Frenchman Michel Barnier looked stoney-faced as they left Downing Street following crunch talks with the PM last night.
The duo had entered Number 10 with a grin for a working dinner to discuss Brexit but left after an hour and 45 minutes.
Mrs May’s spokeswoman said during the meeting the Prime Minister reiterated the UK’s commitment to achieving “a deep and special partnership” with the European Union.
She added: “The PM had a constructive meeting this evening with President Juncker of the European Commission.
“Following the UK’s letter of notification under Article 50 (that it is exiting the EU), she reiterated the UK’s commitment to achieving a deep and special partnership with the European Union.”
Traders are signalling that they may be prepared to short the euro as it continues to lose its rally following the French elections Sunday.
One analyst on tradingview.com said: “We can anticipate a new pivot forming at the blue median line .
“Already showing signs of rejection with the sellers winning the battle at the high.
“If price can break the support line then I plan on taking a short if price retraces to test the break.
“Current high also looks nice on a channel in the daily view”.
ECB chief Mario Draghi said today that he is not to raise rates as he continues his money printing programme.
He said: “A very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium-term. In terms of my criteria the (inflation) assessment hasn’t really changed”.
State Street Global Markets macro strategy Timothy Graf highlighted the fact that ECB is unwilling to change course, despite claiming the economy is improving and political risks are fading.
He said: “Low core inflation is clearly weighing in their minds, suggesting policymaker caution will dominate for at least a few more meetings.
“While the second half of the year might get more interesting if the better run of data continues and core inflation starts to trend higher, asset purchase levels and benchmark rates will likely hold for at least the next few meetings”.
This is a developing story please check back for updates…