The US dollar remained well supported on Friday, with the currency continuing to catch bids in light of the Federal Reserve’s recent hawkish shift.
Increasing scrutiny over the funding of Boris Johnson’s refurbishment of his Downing Street flat and the lead up to the local and Scottish parliamentary elections have caused political uncertainty that weighed on Sterling this week.
On the other hand, as April’s finalised manufacturing PMI saw a slight upward revision, this helped to keep a floor under GBP exchange rates for the time being.
Fresh evidence of the economy starting to return to a stronger growth trend at the start of the second quarter gave investors less incentive to sell out of the pound.
The mood towards the pound could improve again on Thursday in the wake of the Bank of England’s (BoE) May policy meeting.
While no change in monetary policy looks likely, any upgrades to the bank’s growth forecasts could help boost the pound.
Meanwhile, if the finalised April services PMI confirms a sharp uptick in sector growth, GBP exchange rates could receive further support.
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)