LONDON – Sterling continued to rise, mostly on the back of dollar weakness, but also because of some investors’ optimism regarding Brexit trade negotiations, ING strategist Viral Patel said, according to a report from Dow Jones.
This means that if the dollar decline reverses, falls in sterling should be limited.
Earlier on Thursday, the Pound Sterling/United States Dollar exchange rate hit a new post-Brexit vote high of 1.4329.
This leaves a risk of a technical correction, but investors are likely to buy the pound back if it drops, Patel said, adding that GBP/USD is unlikely to fall to 1.30.
Sterling also rose versus the euro on Thursday, with EUR/GBP hitting a six-month low of 0.8688, Dow Jones added.