Sterling is set to continue its appreciation against the euro, says Nick Beecroft, Chairman of Saxo Capital Markets. He expects Sterling to hit 0.70 against the euro within the next six months.

Sterling’s rise against the euro is driven by the relative strength of the UK economy compared to Europe. The Russia-Ukraine crisis could cause additional macro problems for Europe and uncertainty remains over what will happen in Greece after anti-austerity party Syriza’s recent election win.

UK gross domestic product grew by 2.6% in 2014 as a whole, upfrom 1.7% in 2013. That puts it in the running to be the world'sfastest-growing major advanced economy last year. A slowdown to 0.5% growth inthe fourth quarter was bigger than expected, but the annual figure was stillthe strongest growth Britain has seen since 2007.