The Pound hit its highest level in more than two-years against the US Dollar on Friday as speculation continues to build that the UK economy will become the best performing Western economy after the US over the next five-years.
The continuing strong performance of the UK housing market and the continuing decline in the number of Brits out of work has bolstered confidence that the economy will make a strong recovery over the next few years. Some economists are predicting that the UK will overtake France as the world’s fifth largest economy by 2015.
“We expect the economic recovery in the UK to continue at a solid pace next year, driven by fixed investment and underlying domestic demand, that should be supportive for the Pound,” said a senior currency strategist at UBS.
The Centre for Economic and Business Research (CEBR) added to the sense of optimism after it said that it believes that the UK will overtake Germany as Europe’s biggest economy by 2030 and said that a UK withdrawal from the European Union could be beneficial to the UK economy.
“My instinct is that in the short term, the impact of leaving the EU would undoubtedly be negative,” he said. “My suspicion is that over a 15-year period, it would probably be positive,” said CEBR Cheif executive Douglas McWilliams.
Against the Euro the US Dollar and Pound softened following the publication of better-than-expected data out of Spain and France.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6065
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7248
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0644
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6486
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3794
(Correct as of 10:10 am GMT)
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