British Pound Strengthens against Dollar and Euro

The British pound reached its highest level this year peaking at 1.20 against the Euro during overnight trading. The pound has been supported by a recent run of strong UK economic data which has added to expectations that the Bank of England will raise interest rates earlier than it has flagged, possibly in early 2015.

The pound rose to its highest level in nine months against the US dollar as the US government slipped into a partial shutdown. The pound hit $1.62 against the dollar in the morning, its highest level since January as the troubled political situation across the Atlantic intensified.

This is welcome news for UK contractors and small businesses looking to invest overseas. The UK market has shown strong signs of recovery with interim contractor positions on the rise in the latter half of 2013.