The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
Although Bailey also indicated that negative interest rates are not an immediate possibility, it failed to offer investors sufficient reassurance to boost the pound.
While May’s UK manufacturing and services PMIs picked up from the lows seen in April, they still represented a month of significant slowdown for the economy.
Coupled with April’s record jump in government borrowing, this painted a less-than-encouraging picture of the economic outlook which kept the pound under pressure ahead of the weekend.
With a lack of UK data released this week, the potential for GBP exchange rate gains look muted.
The UK government’s announcement of reopening non-essential shops gave the pound some support as market sentiment was boosted at lockdown restrictions beginning to ease.
However, concerns still linger over Brexit trade negotiations in June and possible negative interest rates, which look likely to hang over the pound and prevent significant gains.
Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.