The pound was strong against both the euro and the dollar yesterday, as a series of positive data releases reduced the likelihood of an interest rate cut by the Bank of England next week.
Following positive jobs data on Tuesday, the Business Optimism Index released yesterday rose to +23 in the first quarter of 2020, its highest level since the second quarter of 2014. This was the largest positive swing on record.
The markets now look ahead to Services, Manufacturing and Composite PMI data tomorrow. We could see sterling move depending on the outcome of this data.
MPs have rejected changes made to the Brexit Withdrawal Bill by the House of Lords. The Commons overturned all five amendments, including one which would allow refugee children to join relatives in the UK after Brexit.
