The UK economy showed no growth in any sector and the production and construction sectors fell. This was an unexpected fall, last week Keir Starmer said he wanted the UK to be the ‘fastest growing G7 economy’. Labour have a mountain to climb but is holding fast to its plan for long-term growth and it looks like the foreign exchange markets believe it. 

This week the pound has reached a post-Brexit high against the euro. This is most likely due to the likelihood that Bank of England interest rate cuts will be slower than expected and also linked to the level of instability in Europe, especially France and Germany, in contrast, the UK has a new government with a majority that has released a budget built on filling in the “black hole” and providing long-term growth for the economy. 

Whatever impact the budget may have had on you or your business, it has potentially provided some confidence in the UK against the current European instability.