Sterling soars to highest level since October

Sterling has rocketed to a ten-month high against the dollar today as bullish equities and oil prices boosted market sentiment and investor risk appetites.

The pound reached $1.6851, spurred by better-than-expected UK manufacturing PMI data. It also hit a one month high against the euro. Since its 23-year low in January, when the pound hit $1.35, it has rebounded 25%. "While we are still a long way off the $2 to £1 heights of last year, the pound has rebounded significantly against the dollar," says David Clements, senior analyst at Caxton FX. "Over the medium-term we are forecasting for sterling to continue to gain against the greenback, particularly if banks and blue-chip stocks show renewed strength, as Barclays did today." He b...