The pound ended last week on the back foot after the release of disappointing GDP data. A slowdown in the UK economy in January pushed GBP/EUR down by half a cent and focused attention on the Bank of England’s next interest rate decision on Thursday (20 March).
This was an unhelpful distraction too for chancellor Rachel Reeves, who will step up to deliver her Spring statement in the House of Commons next week. Labour has staked much on its quest to boost growth, and ministers have begun talking about significant spending cuts rather than any tax increases. Regardless, money is tight at the minute and the pound faces a nervous wait to see how the statement goes down.
For sterling, the result of all this is an unwelcome but nonetheless familiar sense of uncertainty. With your budget at stake, it’s well worth allowing us to remove that uncertainty. Lock in today’s GBP/EUR rate by calling your account manager on 020 8003 4915.
US consumer sentiment plunged to its lowest level since November 2022 in the University of Michigan’s March survey. Many consumers pointed to extreme uncertainty in a number of areas, from personal finance and savings to investments. In just two months, consumer confidence (as measured in the university’s study) has dropped well below the historical average.
The Bank of England’s interest rate decision is the main event this week for anyone with a vested interest in sterling. The Federal Reserve will announce its own decision on Wednesday evening, with attention sure to focus on any remarks chairman Jerome Powell has to make with regard to the new US president.
A smattering of economic data will keep things moving along. For the eurozone, the German ZEW economic sentiment survey is the most impactful, while in the UK eyes will be on unemployment data, helpfully published the morning of the Bank’s decision.
