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Pope: Why GBP will make new highs after the summer

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August 05, 2014 bank of england, boe, business, carney, cips, dollar, economics, england, england economy, eurgbp, euro dollar, eurozone, finance, foreign exchange, forex, forex trading, fx, gb, gbp, gbpeur, gbpusd, gdp, general election, highs, interest, interest rates, macro, manufacturing, mark carney, markit, news, owen thomas, pmi, pope, pound, pound dollar, pound sterling, rates, recovery, saxo, saxo bank, saxo tv, service, service pmi, services, spotlight, spotlight ideas, stephen, sterling, tradingfloor.com, uk, uk economy, uk election, uk gdp, uk growth, uk rates, uk recovery, usdgbp, video
There's plenty of life left in the pound and we can expect new highs once the European summer is over; that's according to Stephen Pope, the MD of Spotlightideas. Sterling got a boost this Tuesday after much better than expected service PMI data. The Markit/CIPS Purchasing Managers' Index for services hit an eight month high,to 59.1. That's up from a 57.7% reading in June.
It's led to increased speculation the Bank of England will raise rates much quicker than expected. However, Stephen still believes there's plenty of slack in the economy and he doesn't expect a rate rise until the summer of 2015. A general election in the UK in May could complicate when the central bank actually moves. 
Sterling is up around ten percent against the dollar this year. Unlike many commentators, Stephen's not too concerned that it's hampering Britain's recovery.Although the economy isn't going "gangbusters", he says, the UK economy is performing well and the currency level isn't a fetter to the country's performance.