The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
While the manufacturing sector accounts for a smaller percentage of UK gross domestic product than the services sector, investors were still encouraged by this evidence of renewed growth.
Coupled with a solid services PMI reading this reduced fears of the economy suffering a fresh slowdown in the first quarter, paving the way for GBP exchange rates to rally.
However, as comments from a French official stirred fresh anxiety over the possibility of the Brexit transition period ending without a trade agreement this soon knocked the pound off its positive footing.
February’s CBI reported retail sales index could offer GBP exchange rates another leg up, though, if it points towards a rebound in consumer spending.
Evidence that consumer confidence improved in the first quarter would add weight to hopes that the UK economy could deliver a stronger economic performance, boosting the appeal of the pound.
Even so, as long as tensions between UK and EU officials show signs of mounting a sense of anxiety could still keep the pound under a degree of pressure for the foreseeable future.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)