After strengthening at the beginning of this week, the pound is slightly weaker against the euro and the dollar this morning but still trading around strong levels.
The pound is moving with the markets and responding to fears of economic slowdown in the UK. In his spring statement yesterday, Chancellor Rishi Sunak said, “The actions we have taken to sanction Putin’s regime are not cost-free for us at home. The invasion of Ukraine presents a risk to our recovery as it does to countries around the world.”
Sunak also said that inflation is expected to average at 7.4% and that the government’s household support fund would double. However, critics have said that whilst the Budget focussed on tax, measures for struggling firms and households are lacking.
Today, a series of PMI figures will be released for the UK, which will give an indication of how the UK economy performed in March.
