Sterling opened the week near 1.36 against the dollar and 1.15 against the euro, recovering slightly after earlier losses. The move was limited, and markets are now focused on Thursday’s UK GDP figures. A strong reading could delay Bank of England rate cuts and support the pound.
Leadership uncertainty and talk of increased government spending could affect fiscal credibility. If markets see a shift toward looser policy, it could drive yields higher and weaken sterling further.
The US dollar slipped after hitting recent highs, as risk appetite returned and markets braced for delayed non-farm payrolls and retail sales data. The jobs report, now expected midweek, is key. A strong number would support the dollar by pushing back Fed rate cut expectations. A soft report would likely pull the dollar lower, creating opportunities in other currencies. The euro continued to gain against the pound and held stable near 1.19 to the dollar. Resilient economic data is helping the euro stay firm.
Finseta Plc (LON:FIN), formerly Cornerstone FS PLC, is a United Kingdom-based foreignexchange and payments company offering multi-currency accounts and payment solutions to businesses and individuals through its global payments network.
