Sterling strengthened by just under 0.5% against most major currencies on Monday while British banks were closed, but nevertheless starts May 2% down on this time last month against the euro.
This could be a pivotal week, with the Bank of England’s interest rate decision on Thursday and the results of the local elections on Friday morning. Although not a great deal is expected from the elections, the future direction of the Scottish independence movement will be of interest for the longer term.
Before that will be the Bank’s vote on Thursday. Although there is unlikely to be any movement on interest rates or quantitative easing (QE), analysts will, as ever, be on guard for any hints as to future changes.
Of key interest as we head towards the summer will be the vaccine programmes in rival financial blocs. As one part of the world sees unprecedented new rates just as the UK, Europe and the US come out of the pandemic, where will this leave the global economy?
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