As the UK economy has grown twice as much as expected over the second quarter of the year, the pound makes impressive gains versus the US dollar. It also made gains against several other currencies, including the euro.
The UK economy had faster growth during the second quarter of this year than it has seen in four years.
The sectors which exploded with growth include construction, manufacturing, and services.
Construction experienced its biggest gain since 1963. Manufacturing grew at its best rate in more than a decade, and services saw triple the growth compared with the first quarter of the year.
The pound has made gains of almost $1.54 against the US dollar, but the UK currency still is a bit weak against the euro. The single currency continues to make gains against the dollar.
If the European stress tests (which have just concluded) show that more banks are able to continue with recovery and rebuild their balance sheets, then euro investors could possibly be able to think about placing stop orders in the market.