Sterling continued its near-constant 10-month rise against the US dollar yesterday, boosted by the news that America’s tightening monetary policy appears to be working considerably better than the UK’s. So far this morning the pound has fallen back, but only marginally.
Yesterday the British economy was revealed to be have shrunk fractionally in May, largely due to extra public holidays, even while salaries are rising at a record level. We will see what impact that is having on inflation on Wednesday, in what will otherwise be a fairly quiet week for data.
GBP/USD past year
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