The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
At the start of the session Sterling sentiment was sapped by renewed concerns over the situation in Ukraine as alleged atrocities committed by Russia troops stoked fears over a prolonged conflict which could further stoke inflationary pressures in the UK.
This was subsequently balanced out by the UK’s latest services PMI as March’s finalised release was revised higher to report the service sector’s largest expansion in nine months.
However, the UK’s cost of living crisis was then thrust back into the spotlight, with the pound then coming under renewed pressure as the rise in National Insurance came into effect on Wednesday.
Further weighing on the pound was a warning from Deutsche Bank that the UK could be headed toward a recession as a result of the rising cost of living.
The pound opens this week already on the back foot, following the publication of a weaker-than-expected GDP print.
The publication of the UK’s consumer price index could push Sterling lower if inflation continued to accelerate rapidly in March, placing more pressure on UK consumers.
However, this could be cushioned by the release of the UK’s latest jobs report, should wage growth have accelerated as strongly as forecast.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)