The pound has strengthened slightly against the euro and the dollar this morning following poor US data.
The US economy saw an “unexpectedly severe” decline in the first three months of 2022 when GDP fell by around 0.35%.
The euro has also benefitted from this broad dollar weakness but remains pressured. Markets will be watching today’s busy data schedule where we will see GDP figures for Spain, Germany, Italy and the eurozone.
For the pound, next week’s Bank of England interest rate decision is likely to be the main driver. A significant rate hike of 50 basis points could send sterling higher.
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