The pound faced another day of volatility on Thursday, spiking on news that the UK and EU had finally reached a consensus on Brexit.
As companies moved to protect themselves from a potential no-deal Brexit in April this naturally limited production growth and business investment, leading the economy to its worst monthly performance in three years.
However, with the quarterly growth trend still in positive territory the impact of the negative data ultimately proved limited, sparing GBP exchange rates from another sharp decline.
Although the Bank of England (BoE) continued to point towards the prospect of a 2019 interest rate hike last week, though, this was not enough to prevent the pound losing ground against its rivals.
The mood towards the pound could sour further on Tuesday, however, if April’s average weekly earnings data fails to impress.
Markets anticipate a fresh loss of momentum in domestic wage growth, adding to worries surrounding the recent uptick in inflationary pressure.
If household finances look set to take another hit at the start of the second quarter this could erode confidence in the wider economic outlook, to the detriment of GBP exchange rates.
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)