Quote from: turkeyfoot on May 13, 2025, 02:14:36 PMHi
Some interesting trends happening...
The Pound has made solid gains against the Euro rising to 5-week highs.1.1716 today
These trends are essentially a reversal of what happened in March and early April.
It's pretty much being driven by trade deals and a corresponding shift in risk appetite.
The US-UK trade deal has benefited the Pound with President Trump saying the UK is a 'great friend of the United States. (Time will tell lol )
The Euro has been a big loser recently, not only falling against the Pound but also against the Dollar
As investors are feeling more optimistic, the big institutional money is flowing out of the Euro and back into the US Dollar and Pound.
The level the Pound looks more vulnerable though.
On Thursday this week, the latest UK GDP data will be announced. It's expected to show the economy has stalled to 0.0% growth ie no growth at all. Not good
This could trigger the Bank of England to cut rates further, which would be Pound negative. Although there seems to a division within the BOE is this the right time for another rate cut as inflation is expected to rise again
Geoff
Hope it continues to increase ready for hols
VG