Yesterday morning the pound was boosted following a positive reading from UK Services PMI which signalled an increase in business optimism. The Services PMI rose to 53.3 in February, above expectations of 51 and up from 48.7 in January.
The pound gained 0.88% against the euro and 0.67% against the US dollar yesterday. Sterling has maintained these gains this morning.
Yesterday the UK government recorded a £5.4 bn surplus despite the ongoing cost-of-living crisis and high debt interest payments. This better-than-expected data means that the public sector spent less than it received in taxes and other income.
Lloyd’s bank, the UK’s biggest mortgage lender, revealed unchanged annual profits of £6.9 bn yesterday, revealing the boost from recent interest rate hikes wasn’t enough to offset loan provisions.
In the news, supermarkets Asda and Morrisons reported yesterday they’re to ration some fresh produce in stores amid shortages caused by bad weather in north Africa and southern Europe. Limits of two and three items per person are rumoured to be put on salad items such as broccoli, lettuce and tomatoes.
Findings of the first four-day week UK trial were presented to MPs yesterday with the director of the campaign calling the trial ‘a major breakthrough.’ It’s reported the number of sick days taken during the trial fell by two-thirds.
Speaking to crowds in Poland, US president Joe Biden said, “Kyiv is standing strong,” nearly a year after Russia’s invasion of Ukraine. The president reiterated the US’ commitment to NATO saying, “an attack against one is an attack against all.”
In Canada, the inflation rate fell to 5.9% yesterday, down from 6.3% in December. This rate is the lowest the North American country has seen since February 2022 and below market expectations of 6.1%.
Across the pond, data-watchers received readings for US existing home sales which declined by 0.7% to a seasonally adjusted annual rate of €4 m. This is the lowest reading since October 2021.
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