Weekly Market Report

Sterling remained under modest pressure of over the last week, with markets reacting to softer UK economic growth data and ongoing global interest rate expectations. In the US, GDP figures came out softer than expected and unemployment claims edged slightly higher. However, January’s unemployment claims increased which showed continued job creation. This offset some concerns which meant the US Dollar held on to most of its strength.

The markets seem to be highly sensitive to commentary from policymakers with even minor shifts in tone leading to short-term volatility.

What this may mean for businesses

While markets remain broadly range-bound overall, sentiment can quickly shift around data announcements and policymakers speeches.

o Continued volatility around key economic releases

o GBP sensitive to economic data underperforming

o Continued sensitivity to US economic indicators

o Ongoing importance of monitoring exposure

As always, considerations vary depending on individual circumstances.

In particular, some businesses have looked at market orders to manage exposure around periods of heightened volatility.