The pound finished the week strong against the dollar and weaker against the euro, due to the strength of the single currency. Sterling was still benefitting from the Bank of England’s cautious approach to rate cuts and a “constructive” start to UK-EU trade talks.
This week will see the UK budget on Wednesday, with headline measures expected to include a tax cut by raising National Insurance thresholds. We’ll also see a series of data for the UK, including Balance of Trade, GDP and industrial production figures tomorrow. Anything that comes in worse than expected could fuel the possibility of an interest rate cut at the end of the month.
The Bank of England will hold their Financial Policy Committee meeting on Friday morning, the minutes of which also may offer an insight into the state of the economy in the face of coronavirus.
