Blog


UK Data this week could weaken Sterling further

Sterling rose towards $1.30 again today, with figures showing that speculators have cut bearish bets on the currency by the most in more than a year and the third most on record.

The overwhelmingly negative view on the pound dominating foreign exchange markets since the Brexit referendum in June last year has abated since British prime minister Theresa May called a snap general election a month ago.

Despite softer growth, the pound’s drop since the Brexit vote means the U.K. is facing a sharp inflation pickup. Data on Tuesday is forecast to show that prices rose an annual 2.6 percent in April, the strongest since 2013. A day later, the worsening squeeze on workers will be highlighted in figures expected to show wage growth stuck at 2.2 percent in the first quarter.

The BOE kept its benchmark interest rate at a record-low 0.25 percent last week, though it warned that inflation will rise faster this year than previously predicted.

Leave a Reply

Your email address will not be published. Required fields are marked *

five × one =

What's Going On?

Currencies 4 You Limited is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House, Victory Way, Admirals Park, Crossway Dartford, DA2 6QD. Currencies 4 You's Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Ltd is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. Reference number: 900797. Ebury Partners UK Ltd is registered with the Information Commissioners Office, with registration number: Z209673X | Terms and Conditions | Privacy Statement | Careers