Dollar Weakness Holds Up Sterling Gains – 31 May, 2018

Despite sterling having been hit hard by the dollar’s rally since mid April, the currency is out of a six month slump as the dollar fell across the board. The pound traded at $1.3334, 0.4 percent higher, and dipped lightly settling at $1.3288. Business surveys for May will be released at the end of the week starting with manufacturing which will give insight into how the UK economy is performing in the second quarter. The dollar fell helping other currencies but managed to edge back a bit when the Trump administration announced plans to impose tariffs on steel and aluminum imports from the EU. The pound rose against the euro by 0.1 percent to 87.71 pence per euro.