The Pound suffered its worst quarter performance since the EU's June 2016 vote, with the biggest sell-off recorded in the history of the currency. The pound has fallen more than 6% since April to 7-1/2 month low and the second quarter performance is the second worst quarter since the financial crisis in 2008.
Despite the weakness of the currency, which prompted the Bank of England to postpone the rate hike decision, market pricing for the August rate hike was around 60%. On the last day of trading in the second quarter, sterling rallied strongly after reviewing the first-quarter growth reading so, GBPUSD retreated from the 1.3060/90 support area to 1.3140 levels at the moment.
The British economy grew by 0.2% in the first quarter of 2018 compared to the preliminary reading, which indicated growth of only 0.1%.
The euro also jumped markedly after EU leaders reached an agreement on immigration, easing pressure on German Chancellor Angela Merkel. The single currency rose against the US dollar, the Swiss franc, the British pound and the Japanese yen.
Also, the euro helped by inflation which reached to its highest level in more than a year in June due to higher energy prices. The euro is currently trading at 1.1637 levels.
