Business World

Sunday 18 March 2018

Sterling gains on UK wage recovery

The pound gained 0.3pc to $1.5565 by midday yesterday
The pound gained 0.3pc to $1.5565 by midday yesterday

David Goodman

The pound sterling is leading the way in currency markets in the wake of the Greek bailout agreement.

With Greece pulling back from the precipice of a euro exit, traders are switching their focus to the UK economy.

The strong pound is a boost to Irish exporters, with the food and drink sector especially likely to reap competitivity gains.

Reports are due this week which, according to analysts, will show UK average earnings and employment climbed in the three months through May, bolstering the case for higher interest rates.

That's boosting sterling, which jumped at least 0.4pc against all 16 of its major peers yesterday, while damping demand for government bonds and short-sterling futures.

The pound gained 0.3pc to $1.5565 by midday yesterday, after sliding for the past three weeks. Sterling strengthened 1.1pc to 71.11 pence per euro.

The pound rose 7pc against a currency basket tracked by Bloomberg in the past three months.

Irish Independent

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