The pound was buoyed by the weakness of the US dollar

On April 17, Convera strategist George Vessey said in a report that concerns about the slowdown in U.S. economic growth caused by tariffs are largely the reason for the recent rise in the pound against the dollar. However, lower-than-expected inflation and labour market data from the UK this week also weighed on the pound. This cemented market expectations for a rate cut by the Bank of England in May, with two more rate cuts expected by the end of the year. However, the pound has weakened against the euro recently as the euro benefits from higher liquidity and continued asset flows back into the eurozone.