Sterling strongest since June 2016

Following better than expected UK jobs data, Sterling has risen 1.44% against the US Dollar and 0.75% against the Euro throughout today's trading. The US Dollar has seen weakness in and of itself, magnifying the move upwards for the Pound in this currency pair, and bringing the exchange rate to $1.4204 for every £1 – the highest since June 2016. As the UK economy continues to be stronger than many expected following the Brexit referendum, a combination of robust jobs data, higher inflation and relatively weak wage inflation are all laying the ground for further interest rate hikes which historically leads to a strengthening of currency. As European stock markets are broadly positive today, the FTSE 100 index is down around 0.5% as a stronger currency diminishes the value of profits earned abroad that must be repatriated back to Sterling.