As July comes to an end, the pound has recovered against most major currencies. Sterling has been supported in recent days by falling Covid-19 cases and received another boost yesterday after dovish comments from the Federal Reserve Chair, Jerome Powell, but has weakened slightly this morning.
However, markets will be keeping a close eye on next week’s key Bank of England policy update. They will be listening out for any hints that the Bank may raise interest rates, which could determine where sterling goes next.
The UK economy is, nonetheless, predicted to see the fastest annual growth of the G7 group, along with the US, thanks to the falling Covid-19 cases, the successful vaccine rollout and the ending of restrictions.
Yesterday, we saw some data releases for the UK. Car production saw the worst June output total since 1953 caused primarily by a global chip shortage. Looking to the housing market, month-on-month mortgage lending was the highest since records began in 1993 as buyers flocked to take advantage of the stamp duty break.
