The Weekly Market Update
News & Insights
w/c 11th May: Political Upheaval?
GBP
The British Pound experienced a mixed week, influenced by global tensions, improving market confidence and uncertainty around UK local elections. Sterling initially weakened during quiet holiday trading but later recovered as hopes for progress in the Middle East improved sentiment. Political concerns and Labour’s election losses then pressured the Pound again before it steadied after investors reacted less negatively than feared. Attention now turns to upcoming UK growth figures for further direction.
EUR
The Euro without clear direction last week as limited economic data and changing market sentiment shaped movement. It gained support midweek from weaker demand for safer assets, despite disappointing business activity figures showing continued weakness across the Eurozone. Stronger German factory orders also helped lift confidence briefly before gains faded later in the week. Investors are now watching Germany’s latest economic sentiment survey for clues on the region’s outlook.
USD
The U.S. Dollar weakened despite a strong jobs report, as slower wage growth eased concerns about rising inflation. Hiring remained healthy and unemployment stayed low, pointing to a steady economy, but investors focused on signs that pay pressures are cooling. Markets also remained cautious because recent labour data has been mixed. Declines in government and manufacturing employment added to concerns that parts of the economy are still under pressure.
Stay ahead with our weekly market updates, delivered straight to your inbox.