020 7898 0500The pound had a fine end to the week against the dollar on Friday and, over the course of seven days, strengthened by two cents. This was in no small part because of the progress made in the Brexit withdrawal agreement, which was approved by EU27 leaders on Friday. Expectations of an interest rate hike in May helped too, as did Vlieghe’s speech in which he said he saw a need for one or two rate hikes over the next few year.
We also saw that the cost-of-living squeeze appears to be over, as inflation fell by more than expected to 2.7% and wage growth increase to narrow the gap. UK households have been feeling the pinch for a while now, but this news has led to make expecting an increase in business confidence, as well as consumer spending. Both would prove good for the economy and it is fair to say that last week was one of the most positive for the UK in a while.
This week is a little quieter, but we do have the final reading of the GDP growth rate for the fourth quarter of 2017 on Thursday, as well as the Gfk consumer confidence and Nationwide housing prices for March.
