Sterling hits six-month dollar high; Investec AM predicts further pound gains

Sterling hit a six-month high against the dollar today as poor US economic data continues to weigh on the currency.

The pound at one stage was over 1% higher than the greenback, but has rebounded slightly in recent hours. The dollar is currently 0.8% higher to $1.5825, the highest since February. Traders expect recent weakness in economic data will result in the US to leave interest rates lower for longer. While the US posted weaker than expected Q2 growth figures, the UK surprised on the upside. Thanos Papasavvas, who heads up $5.3bn of active currency funds at Investec Asset Management, says he expects the pound to strengthen further in the near-term. Investec AM went bullish on sterling again...