Good news for the UK economy as Sterling strengthens
Surprisingly positive retail sales data has provided the boost the Pound needed to reach over $1.30. The latest UK shopping figures showed that 2.3% more was purchased than throughout the month of March; and 4% more than April 2017.
Other strong results were seen in the UK used car market, which saw 3.4% growth in sales since last year – another positive indicator for the economy.
David Johnson, director at Halo Financial commented on the data release, said:
“After the downbeat forecast for UK growth announced last week, these figures are welcome news for the UK economy and offer some much-needed confidence; also providing support for the GDP data for Q2 2017.
“Recent events in the USA are a shadow looming over global markets, however, as the US Dollar plummets against all its major currency counterparts. In contrast, “safe havens”, including gold, the Swiss Franc and the Japanese Yen, are all benefitting from the US Dollar’s woes. This, in turn, is also flattering the Euro, which ought to be weaker, given current political uncertainty across the Eurozone.
“We are likely to see further volatility as the situation plays out, so it is advisable to keep a close eye on currency movements in the coming days.”