The pound ended Friday on a weaker note as it continued to process the Bank of England’s decision on interest rates. The Bank’s Monetary Policy Committee decided to boost its quantitative easing programme to help the economy through the coronavirus crisis, but not to take rates lower.
Ongoing concerns about negotiations between the UK and EU have also kept the pound low. Despite initial optimism after the announcement of another round of trade talks in July, there is concern that tension between the two sides will increase as the deadline edges closer.
Figures released on Friday from the Office for National Statistics showed that public sector net borrowing hit a record high in May and retail sales rebounded on a monthly basis.
This week is light on data for the UK, but we will see PMI figures released tomorrow. They are expected to show that activity has picked up in both manufacturing and services sectors.
