The pound has weakened against the euro and is trading around fresh two-year lows against the dollar following disappointing UK GDP figures.
The UK economy shrank by 0.1% in March, a larger decline than expected, as the rising cost of living takes its toll on consumer spending.
Yesterday, Prime Minister Boris Johnson agreed a mutual pact with the leaders of Finland and Sweden to come to each other’s aid should either nation come under attack. This deal was struck during talks regarding European safety more broadly. Finland has also announced that it should apply to join Nato “without delay”.
In economic news, European Central Bank President Christine Lagarde sent clear signals of her support for an interest rate hike in July. This initially supported the euro.
In the US, inflation fell to 8.3%. This was a decline on March’s figure but was still higher than predicted.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
