As last Friday came to a close, the UK came to terms with the news that UK government borrowing hit an all-time high. This has left the economy in a bad way but the Pound was able to keep hold of some positive gains. Investors are hopeful that the increase in debt is going to help the economy and get international payments back on track. However, the currency finished the week off at 1.1161 against the Euro and 1.216 against the US Dollar according to the Foreign Exchange market.
Following the release of the European Central Bank’s meeting minutes, it did not look good for the Euro as they indicated that further stimulus might be required in June. This meant that support for the single currency disappeared. Despite the bad news, there was some fresh hope on Monday as the German IFO business climate index had made some slight improvements.
The US Dollar became slightly stronger as the week came to an end as market risk appetite diminished. There is still a lot of uncertainty surrounding the global economy and so, many investors decided to put their trust in the safe-haven currency once again. However, risk appetite returned during Monday and that meant that investors were looking elsewhere again.