The English pound climbed on Monday against the world's reserve currency and the common currency of the European Union as optimism spread about the strength of the regional economy, according to Reuters.
As 2013 drives toward a close and 2014 pushes toward beginning, the pound is set to achieve yearly gains against the U.S. dollar. Economic indicators demonstrate the region's economic recovery is improving.
"We remain cautious on sterling/dollar as the BoE is unlikely to start raising interest rates before the Fed," head of FX strategy Mansoor Mohiuddin with UBS told Reuters on Monday. "Both central banks may only begin hiking in the second half of 2015. But sterling should make renewed gains against the euro towards 0.81 pence as the European Central Bank keeps its explicit easing bias in 2014."
The pound increased about 0.2 percent against both the U.S. dollar and the euro.
The pound was heading toward marking its top value in two years against the dollar after policy maker Andrew Bailey with the Bank of England said the central bank is keeping a close eye on the rapid advance of housing prices' advance, according to Bloomberg.
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