On Wednesday sterling recovered from early losses shrugging off weakened business activity due to global the geopolitical situation with trade tensions.
Sterling fell flat on Wednesday on the US dollar at $1.3337 and the pound fell by as mush as 0.7% against the greenback, Reuters reported.
“The market may be reluctant to take kind of a strong view at this point in terms of how that’s likely to impact the UK economy and pound,” said Lee Hardman, senior currency analyst at MUFG.
“But certainly, if you look at the (PMI) figures today …it does show that business confidence did drop more sharply than expected in April, so that certainly increases the risk of the UK economy slowing down more in the second quarter.”
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