The pound jumped to a fresh 10-week peak versus the dollar on Friday and scaled to an 11-month top versus the euro, stimulating traders to unwind their long euro positions.
The British currency headed towards a fresh post-Brexit vote top against the greenback, climbing 0.4 percent to $1.4296. Versus the euro, the pound soared 0.4 percent to 86.32 pence, its top since late May 2017.
Against the single currency, sterling has traded in a 86.5 pence to 90 pence per euro range for almost half-year, but cautious statements from the European Central Bank officials this week and firm anticipations of a rate increases from the Bank of England in May lifted the British currency to an 11-month peak.
Anticipations of a rate increase have been a major driver of pound’s surge in recent sessions while top ECB policymakers’ statements and some sluggish data dragged down the euro.