Sterling closed out the 2nd quarter well against the USD, rallying into the close in a move that also saw GBPEUR back above the 1.10 mark.
Those of you who attended our webinar yesterday that focused on our outlook for the 2nd half of the year will know that significant pitfalls exist for sterling in the coming months, that will likely limit GBP upside. We expect GBPEUR to trade around current levels for a while so a more constructive move higher in the pair should be welcome news for those looking to hedge good levels.
This morning has started in fairly low-key fashion although the Nationwide’s measure of house prices has shown a 2nd consecutive month of price declines. This could be enough at the margin to push the Bank of England into additional stimulus if wider housing demand falls through the rest of the year.
UK manufacturing sentiment numbers are due at 09.30 this morning