Stability Report encouraged the pound to recover some of its lost ground ahead of the weekend, in spite of lingering Brexit-based uncertainty.
Read more about: "Brexit speculation continues to dominate pound outlook"
A trio of underwhelming UK PMIs prompted the pound to slump sharply last week as investors bet on the prospect of a second quarter growth contraction. Worries over the health of the Eurozone economy also picked up in the face of a sharp fall in German factory orders, leaving the euro under pressure. Friday’s stronger-than-expected [...] Read more about: "UK contraction drags on pound"
The pound put on a poor performance last week, with investors focused on Boris and Brexit. However, it wasn’t plain sailing for the euro or US dollar either as both currencies came up against their own headwinds. The pound hit new multi-month lows against the euro and US dollar last week as political uncertainty and [...] Read more about: "Pound hits multi-month lows, euro fluctuates"
The outlook of several major central banks turned more dovish last week, with the odds of the Bank of England (BoE) raising interest rates before the end of the year deteriorating. Comments from European Central Bank (ECB) President Mario Draghi also saw the euro come under pressure, as the prospect of an interest rate cut [...] Read more about: "The central bank outlook weighs on pound, euro, US dollar"
The pound continued to struggle last week as heightened political uncertainty in the UK capped demand for GBP. Sterling continues to trade in a narrow range at the start of this week as well, with GBP/EUR muted at €1.1225, while GBP/USD is flat at US$1.2591. Looking to the week ahead, the session looks to be [...] Read more about: "UK political uncertainty drags on GBP"
The appeal of the pound weakened in response to April’s UK gross domestic product report, with growth found to have contracted -0.4% on the month. As companies moved to protect themselves from a potential no-deal Brexit in April this naturally limited production growth and business investment, leading the economy to its worst monthly performance in [...] Read more about: "Pound – lower after UK growth sees contraction in April"
An unexpected contraction in the UK manufacturing PMI put fresh pressure on the pound with signs increasingly pointing towards the economy losing momentum in the second quarter. Worries over the outlook of the Eurozone economy also limited the appeal of the euro, with the Italian government voicing its dissatisfaction with EU budget rules once again. [...] Read more about: "UK manufacturing contraction hits pound"
As Theresa May announced her resignation as leader of the Conservative Party the pound came under fresh pressure, with markets wary of the prospect of a hard-leaning Brexiteer winning the ensuing leadership contest. The euro also struggled to gain ground over the course of the week thanks to the increasingly dovish outlook of the European [...] Read more about: "Theresa May’s imminent departure drags pound lower"
The collapse of cross-party Brexit discussions left the pound on a weaker footing, with political uncertainty looking set to dominate the domestic outlook in the months ahead. Although the first quarter German and Eurozone gross domestic product data showed an improvement on the previous quarter this was not enough to shore up the euro. [...] Read more about: "End of cross-party Brexit talks weighs on pound"
Friday’s UK gross domestic product data proved mixed in nature, leaving the pound with limited support ahead of the weekend. Although the headline annual first quarter gross domestic product accelerated from 1.4% to 1.8% as forecast this failed to ease market worries over the underlying health of the UK economy. Investors were disappointed as the [...] Read more about: "Pound remains muted after UK gross domestic product fails to impress"
