Sterling is looking strong against the dollar this morning. This is due to better-than-expected GDP data and a weakened dollar, which fell slightly after Federal Reserve Chairman Jerome Powell made a speech on interest rates yesterday. The pound has ticked slightly higher against the euro, but it is likely that this will be short-lived.
Yesterday morning, GDP data came in better-than-expected, with the economy expanding 0.3% after contracting by 0.4% in April.
Sterling remained at two-year lows yesterday, still suffering due to poor economic data and a fast-approaching Brexit deadline. Apart from the ‘flash crash’ in January, it was at its weakest since April 2017.
As fears of a no-deal Brexit increase, Virgin Boss, Sir Richard Branson has said that a no-deal would cause the pound to plummet. He added that it would be “devastating” for Virgin, and also declared that it is “going to result in us spending a lot less money in Britain, and just putting all our energies into other countries.”
