Pound Sterling Hits 2-1/2 Years High Against Euro

Pound Sterling hit 2-1/2 years high against the euro on the back of the growing confidence that next week’s  elections will give the Conservative Party the parliamentary majority to deliver Brexit, ending a term of uncertainty.

The political uncertainty of the Brexit has weighed on the British currency for almost four years. On Dec. 12 polls expects the Conservatives to win the elections toward a more certain future.

A majority vote for the currently ruling Conservative Party should get a Brexit deal out of the European Union by the end of January 2020.

Some analysts said that If the polls' trend remains flat, then sterling is expected to keep going upwards.

The pound sterling went up 0.2% against the euro at 84.39 pence, after touching 84.31 pence earlier in the session, its strongest since May 2017, gaining almost 10% from its low in August.

As for the U.S. dollar, the pound rose 0.4% to $1.3144, after hitting a seven-month high at $1.3159, marking more than 7% of gains since October.

Analysts said the the pound’s recent gains have encouraged traders to cover their short sterling positions, expecting the sterling to rise between 20-30% on the long run following a good deal Brexit through the Conservative party.