The huge losses felt by the Turkish lira at the back end of last week gave sterling some much needed respite. Trump’s punitive tariffs caused a knock on effect of weakening the euro, to the benefit of the pound. In general the pound remains weighed down by Brexit speculation and even the release of generally solid figures this week did little to help it. Tuesday’s employment data showed that unemployment fell to a 40-odd-year low at 4.0% but earnings growth stagnated.

Concern that there will be knock on effects on the US-Turkey tariffs across Europe weighed on the Euro this week. Spain, Italy, France and Holland are thought to be large lenders to Turkey and this caused some concern. However, the euro emerged from the week largely unscathed and there was little data to cause problems. Italian inflation was steady at 1.5% and Eurozone growth was revised up to 0.4% for the second quarter, eliminating any possible advantage from the UK.

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