The pound has weakened against the euro and is trading around fresh two-year lows against the dollar following disappointing UK GDP figures.
After flatlining in February, the UK economy shrank by 0.1% in March as the rising cost of living forced consumers to cut back on spending. This was a worse fall than predicted and has weighed on sterling.
The pound is also suffering from an increasingly negative Brexit narrative after the UK rejected the EU’s proposal to reduce the impact of the post-Brexit treaty for Northern Ireland.
The EU claims that the proposal would reduce the amount of administration and checks on goods at the borders, however, Foreign Secretary Liz Truss says it would lead to “everyday items disappearing from shelves”.
