Sterling climbed above $1.39 on Thursday for the first time since Britain’s vote to leave the European Union and was on track for a fifth consecutive week of gains against the U.S. currency – its longest winning streak since mid-2014.
The pound has been buoyed by a combination of broad dollar weakness and optimism that Britain will reach a favourable divorce deal with the EU and that the economy will continue to grow at a healthy clip – albeit more slowly that if there had been no Brexit vote.
Sterling has climbed more than 5 percent against the dollar over the past two months, helped by Britain’s success in late December in securing a deal to move exit talks on to discussions over a transition period and post-Brexit trade.
The pound jumped to as high as $1.3942 in New York trading on Wednesday before easing back by the end of the day. On Thursday it rebounded half a percent to trade at $1.3903.