UK Economy

Pound Sterling sunk like a stone following the release of PMI data that suggests the UK economy was close to contracting in May and conditions are deteriorating faster than was the case during the pandemic.

The British Pound turned higher following another better than expected economic data release.

A cost of living crisis and fears of stagflation underpin a bearish consensus towards the UK economy and the Pound amongst economists and investors, but some warn it is too early to write off the UK economy.

The British Pound rose against the Euro and Dollar following the release of UK labour market statistics that revealed a strong jump in wages and a stronger than expected fall in unemployment.

The Pound to Euro exchange rate's decline extended on the day the Office for National Statistics announced the UK economy shrank in March.

"To put it politely, the closer we look into the report, the greater our disappointment with the MPC."

The British Pound was left floundering against the Euro and Dollar amidst souring global investor sentiment and increasing fears the UK economy could suffer a recession.

Consumer confidence readings out of the UK are signalling a notable economic slowdown ahead and one economist says investors should be prepared for a "bad outcome" that could even include a recession.

A slew of negative data readings has sent the British Pound sharply lower against the Euro and Dollar.

Data shows UK households to have saved more money than economists had expected in the first three months of 2021, suggesting the post-lockdown recovery could eclipse existing economic growth forecasts.

UK inflation rose by a greater margin than analysts had been expecting, but the rise was by no means surprising enough to warrant a major reconsideration of how the Bank of England might shift its views on interest rates.

The Pound caught a bid on Tuesday in the wake of better than expected labour market statistics, confirming our suspicions that the currency was likely to become increasingly responsive to data releases in the short-term.

The UK economy suffered its sharpest annual decline on record in 2020 the ONS has confirmed, but a pickup in spending to fight the covid-19 health emergency means the country is set to avoid a double-dip recession.

Inflation is back on the radar for investors who worry that the response by governments and central banks to the covid-19 crisis is storing up higher prices in coming months and years.