UK business confidence hits three-year high
Starting with the title today then and business confidence in the UK has risen for a fourth-consecutive month and reached its highest level for three-years. The report published by Lloyds Bank, also shows economic confidence has hit a 5-year high following the unlocking of restrictions earlier this month.
Sterling looks set to end May positively, after comments from an MPC member yesterday pushed the Pound higher. Gertjan Vlieghe, was speaking of interest rates at the University of Bath and the narrative was welcomed by investors. Vlieghe is considered a 'dovish' member of the MPC, who is cautious on raising rates until inflation and employment have both recovered.
The main headline was about the transition from furlough to employment and if this happens smoothly, an earlier bank rate rise would be appropriate. 'Hawkish' comments from a 'dovish' member could potentially signal a sentiment change in the BoE. The speech itself was enough to lift £-€ by 0.5% and ensure Sterling ends the month strongly across the board.