Donald Trump Might Be President But At Least The Pound Is On The Rise
Turns out that there is a silver lining to Donald Trump becoming president for us Brits. The pound has become the best performing major currency this week as a result of the shock election.
The Independent reported that sterling has climbed against all of leading currencies since last Friday and broke the $1.26 barrier for the first time in five weeks.
Pound sterling is now at its highest value since the dramatic drop in value that occurred in early October, as the currency continued to fall following Britain's vote to leave the European Union.
Lisa Simpsons' view on a Trump presidency. Credit: 21st Century Fox
Tony Cross, analyst at TopTradr, said fears of European political instability are pushing sterling up.
He said: "Granted it's starting from a low base given the beating the currency took, both from the shock Brexit vote and the flash crash just over a month ago, but this is increasingly looking as if it's been overdone.
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"Critically there's growing concern that we'll see a rising tide of nationalism across continental Europe, with French elections in the New Year a real cause for concern, pushing EUR/GBP down to below 0.8700 for the first time since late September."
Alexandra Russell-Oliver, Caxton FX analyst, suggested the British currency is also benefitting from a likely continued 'special relationship' between the US and the UK.
She said: "The pound may be receiving additional support as President-elect Trump emphasises that the US and the UK will continue to enjoy a 'very special' relationship."
President-elect Trump called Theresa May following his victory, inviting her to visit the country and both have stressed the importance of US and UK relations.
Featured image credit: PA Images