Sterling hit another high against the euro yesterday and has stayed there this morning.
Overall, the past week has been mixed, with losses against all of the dollars, especially the New Zealand (losing over 1%) and around 0.4% against the US dollar. However there have been strong gains against the Scandinavian currencies and the Japanese yen as well as the euro.
Driving rates from the sterling side has been a softening of the labour market (i.e. higher unemployment) and comments from the Bank of England governor Andrew Bailey about the Bank’s more positive expectations for economic growth.
Next week is fairly busy for data, with PMI on Tuesday and the all-important inflation figure on Wednesday where a big drop is expected, to 8.5% from the previous month’s 10.1%.
GBP/EUR past year
