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British Pound Hits New Highs

GBP/USD has again hit fresh highs at 1.3842 and GBP/EUR reached a 10-day high at 1.1339. The movement appears to be triggered by news of French President Emmanuel Macron’s meeting with PM May, today, January 18, 2018. Although we are unsure of what these talks entail, discussions will likely be centered around Brexit, trade and Calais. Calais could be particularly prominent given this morning’s news the UK will be investing an extra £44m into the border.

In addition to current political discussions, the French president will be allowing the UK to exhibit the Bayeux Tapestry. It’s likely that behind the generosity, Macron intends to make a tough political point in reference to Brexit as the Bayaux Tapestry depicts an almost metaphorical lesson. The English Prince, Harrold was killed after betraying his ally William of Normandy, for William to then go on and rule England.

Source: Thomas Huskinson, FX Trading Desk, whitespay.com