It’s been a mixed week for sterling, with 0.5% rises against the US and Canadian dollars, little movement against the euro and losses against some commodity-backed currencies like the NZ and Australian dollars and NOK.
The focus of interest among traders remains whether the end of the UK’s vaccine advantage and the risky July opening of the economy is a gamble that has paid off, or if we face an autumn of further disruption.
The longer-term effects of Brexit, which may or may not be responsible for shortages of supplies in the shops, are also under ever closer scrutiny.
This week we’ll see data on mortgage approvals and property prices, and then PMI figures come to the fore. Business optimism has been high in recent months, with readings of around 60 (in “normal times” anything over 50 would be regarded as excellent), but how does business feel about the near future right now? We’ll see on Thursday and Friday.
