A difficult week for sterling which has seen it lose ground against most if not all other major currencies. Against a “resurgent” euro it suffered, at one stage, a loss of over three cents while changes against the US dollar have been even more extreme with movement in both directions of over three cents.
Key local drivers for this were disappointing UK employment and wage growth figures released on Wednesday. Further afield it was the increasing belief that the Eurozone will find some solution to the Greek debt crisis, however fudged that may be, and the less than satisfactory outcome from the latest Federal Reserve meeting proving to be less illuminating than hoped for as to when US interest rates will start to be increased. The Chancellor during his budget speech did outline how well the UK economy was doing, which was supportive of sterling, but with a General Election only a few weeks ago the benefits were short lived.
A quiet day in the markets will see attention turned to the Eurozone, where the European Council meeting continues.