Sterling was the biggest gainer amongst major currencies on Friday, hitting its highest in over two months against the dollar, on relief that the Conservative Party was set for a surprise outright win at the British national election.
The pound rose versus the dollar, extending a gain from the end of last week, as a gauge of retail sales exceeded analysts’ forecasts and trading patterns suggested the U.K. currency was due to halt its downward trend.
What's to love about the GBP? Not much. The U.K. has an economy that can't recover for any length of time, credit rating downgrades are almost a dead certainty and worst of all there's a risk of a vicious downward spiral if investors lose confidence.
The British pound is the top performer ahead of the European close with an advance of 0.12% against the greenback. The gains come on the back of a sell-off in broader risk assets after results from this weekend’s elections.