Sterling Surges to 2024 High Amid Dollar Weakness, Euro Stagnant

Here’s this week’s overview of the Euro and Sterling:

Sterling

Sterling closed 0.4% stronger at 1.337 against USD at close on Friday last week, a new 2024 high.

Economic activity PMIs were slightly weaker than expected, although still showing expansion. The Pound gained last week largely due to a weaker dollar.

The new centre-left Labour Party government in the UK has set a tone of mild fiscal stringency and economic responsibility, coupled with an ambition to raise growth rates. Markets await clarity on what this means in detail, but so far, the tone has helped buoy sterling.

Euro

The Euro traded flat against the dollar last week and ended the week trading at 1.116. Disappointing PMI data and sentiment weighed on the common currency as it failed to move higher against a weaker dollar. Inflation data this week will be closely watched by markets.