Last week Sterling’s surge

It was a very productive week for the pound as it reached its highest level against the euro in 3 months. Two consecutive days of positive economic sentiment were the driving force for the pounds’ surge, especially Thursday’s retail sales figures, which came out much higher than expected.

Over the weekend, finance ministers met in Japan ahead of the G7 meeting on the 26-27th May. It was a meeting which saw the US and Japanese disagree over the current financial market movements, with Washington stating that Tokyo has “no justification” to intervene on the currency markets to stem Yen gains, given the currency movements remain “orderly”.