The British pound continued its strong resurgence against its fiercest rivals as it rallied sharply on Tuesday, making its way to new record finishes versus the euro and the struggling US dollar, as investors saw major improvements on Brexit talks.
According to some forex experts, negative sentiments on Brexit are slowly fading as investors became more positive about the United Kingdom’s quest to separate from the European Union.
This is the main reason why sterling drew a spectacular performance early in 2018 as it emerged as one of the strongest currencies this year, with hopes that the Brexit fears may be soon subdued.
On Tuesday, the British pound tighten its grip to its strength as it breached past the 1.40-level for the first time since it had suffered the impact of the controversial Brexit decision. The pound tacked on 3% advancement against the US dollar and last traded at 1.4026, its best finish in more than six months.
Versus the euro, sterling settled at its four week high, up 1%, at 1.1404, following French President Emmanuel Macron’s comment that the UK can come up with its own solution regarding the trade deal with the continental bloc.
The pound may have been far from its pre-Brexit level of 1.50 but it is slowly regaining its previous form, having its best start in four years, and analysts are confident that the currency will not change course any soon.