Sterling up after May rate rise on the cards

The pound rallied last week after Britain secured itself a Brexit transition deal with the European Union, official data showed British workers’ wages growing at their fastest rate in nearly 2-1/2 years and the BoE confirmed its hawkish tilt.

On Friday, a policy member Vlieghe indicated that the bank base rate would need to rise one or two times each year in the current tightening cycle.

Global markets were shaken last week after U.S. President Donald Trump moved to impose tariffs on Chinese goods, edging the world’s two largest economies closer to a trade war, but latest reports indicated a slightly more selective stance.

The United States asked China in a letter last week to cut the tariff on U.S. autos, buy more U.S.-made semiconductors and give U.S. firms greater access to the Chinese financial sector, the Wall Street Journal reported on today.

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