Weekly market headlines:
Recent reports suggest the UK and EU are closing in on a new agreement covering areas like defence and security, a move that could bring the two sides closer together. While discussions on a youth mobility scheme are still ongoing, early signs of progress have already had a positive impact on the pound. Sterling has strengthened against both the euro and US dollar off the back of this news, giving the UK economy a small but welcome boost in certainty.
Looking ahead, the next key event is this Wednesday’s UK inflation update, when both CPI and RPI figures will be released:
- CPI (Consumer Price Index) tracks the average change in prices of everyday goods and services, a key measure the Bank of England uses when setting interest rates.
- RPI (Retail Price Index) is a broader inflation measure that also includes housing costs like mortgage interest payments.
With inflation still above the Bank of England’s 2% target and expectations that April’s figure will rise to 3.3%, up from 2.6%, rate decisions remain finely balanced. This could play a big role in where the pound heads next.
If you’re planning a transfer this week, whether it’s a property payment, investment, or sending money to family speak to a Lumon currency specialist today. Call +44 (0)204 506 5672 to explore your options.
What’s happening this week?
UK
- Wednesday: Inflation data
