020 7898 0500Despite yesterday’s losses against the dollar, sterling has been trading near the levels seen before the results of the EU referendum. The pound has clearly been boosted with news that there could be some light at the end of the tunnel, as the UK and EU have agreed a provisional deal over the transition period and there is real hope that this move can continue with further progress.
In March, the pound is up around 1.5% against the dollar, but it is still worth approximately 5% less than it was immediately before Brexit. However, inflation has fallen by more than expected and wage growth looks to have closed the gap, so the cost-of-living burden has eased, and there has been some positive economic data releases of late. It remains to be seen how the rest of the year will play out, but the situation is perhaps not quite as bad as we might have once feared and investors appear to be cautiously optimistic at the moment.
Today we have the CBI distributive trades for March which are expected to increase, but the main focus will be on the UK GDP growth rate which is released tomorrow.
