By Steve Goldstein, MarketWatch
The pound on Tuesday moved past the $1.25 level for the first time in more than a month, rising as traders price in a more optimistic global environment.
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.1804% traded at $1.2559, up from $1.2490 on Monday.
The dollar has been losing ground to several currencies of late, even before the recent riots that have been gripping the U.S. The Australian dollar /zigman2/quotes/210560947/realtime/sampled AUDUSD +0.3226% and Norwegian kroner /zigman2/quotes/210561608/realtime/sampled NOKUSD +0.2892% have gained even more than the pound over the last month.
“The U.S. dollar [is] seemingly taking all the pressure at this moment, while U.S. yields remain locked in well-defined ranges,” said Robin Wilkin of Lloyds Bank.
The gains came as the last round of U.K.-European Union negotiations started. The transition period extension deadline is the end of June. Prime Minister Boris Johnson is going to meet Ursula von der Leyen, European Commission President, later this month.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.28% gained 0.9%, after having advanced for 4 of the last 5 sessions.
Gainers included Meggitt /zigman2/quotes/208933633/delayed UK:MGGT +0.30% and Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +3.71% , both of which are reliant on the aerospace industry for business.
Tesco /zigman2/quotes/203761082/delayed UK:TSCO +1.10% was lower as the supermarket chain said its chief financial officer, Alan Stewart, will retire.