Economy
UK economy contracts 0.1% in April as Iran war drives up energy costs
The UK economy shrank 0.1% in April, ending the momentum from a strong first quarter, as higher energy prices triggered by the Iran conflict fed...
Analysis
Sterling weakens on a trade-weighted basis over the next four to six weeks as the April GDP miss compounds Labour leadership uncertainty, removing the positive rate-differential support that had partially offset prior energy-cost headwinds. With the ECB now hiking and the BoE paralysed by stagflation, the euro-sterling cross shifts in the euro's favour as eurozone rate expectations diverge upward from UK rate-cut repricing.
1 hour ago