Pound trades at its highest in three years

On Friday the pound traded at its highest in three years which will likely be the largest weekly gain against the US dollar.

This in part is due to UK retail sales rising and ongoing unease with investors concerning US assets.

The pound gained 1.5% and hit a high of $1.3468 on Friday which is it’s highest since 24 February 2022, Reuters reports.

“This is a sign that the market remains wary of lending to the UK while the government still does not have control of public spending, even if the decline in the energy price cap is adding downward pressure on short term yields this morning,” Kathleen Brooks, XTB research director, said.

“The bond market has dictated UK fiscal policy before, and it could do so again now that bond markets remain volatile.”