[vc_row][vc_column][vc_column_text]The pound struck higher last week, being bolstered by economic optimism following the publication of the UK’s 2021 Budget. At the same time, the US dollar roared higher last week, rising in tandem with surging US Treasury yields. Sterling, meanwhile, has edged higher so far this week, with GBP/EUR ticking up to €1.16 and GBP/USD […]

Improvement in the UK’s May PMIs was not enough to offer the pound any significant boost – speculation over the Bank of England’s policy outlook.

[vc_row][vc_column][vc_column_text]Confirmation that the UK economy experienced a significant contraction in the first quarter left the pound on a weaker footing last week. While a downward revision to the fourth quarter German gross domestic product pushed the Eurozone’s powerhouse economy into a state of recession, this failed to weigh on the euro. Meanwhile support for the […]

Euro recovers ground as Eurozone finance ministers reach support agreement. News that an agreement had finally been reached helped EUR bounce back

policymakers voted unanimously to slash interest rates from 0.75% to 0.25% to defend against the impact of the coronavirus.

A weaker-than-expected UK consumer price index added to the odds of an imminent Bank of England (BoE) interest rate cut this week

[vc_row][vc_column][vc_column_text]Increasing evidence of a fourth quarter UK economic slowdown left the pound under pressure, pushing it away from its New Year’s highs. Although December’s finalised services PMI saw a positive revision from 49.3 to 50.0 this failed to paint an encouraging picture of the economic outlook. With the service sector ending 2019 in a state […]

UK election results. While markets anticipated a Conservative win this did not stop GBP exchange rates from rallying sharply.

[vc_row][vc_column][vc_column_text]The pound spent last week fluctuating in response to the latest UK political developments, while the mood towards the euro soured sharply in response to weaker-than-expected German inflation figures. Meanwhile, the US dollar was exposed to selling pressure as US markets closed for the Thanksgiving holiday, and AUD exchange rates struggled as the odds of […]

UK service sector growth slumps to 40-month low. The pound slumped at the end of last week as markets were left disappointed by the UK’s latest PMI figures.