The pound is at strong levels against the euro and the dollar this morning ahead of the Bank of England’s latest decision on interest rates this week. After speculation earlier this year, Governor Andrew Bailey has since reduced expectation that rates will move into negative territory. However, any comments regarding this or the general outlook could have an impact on the pound.
The pound also continues to move with wider global sentiment and the progress of the UK’s vaccine programme. The vaccine rollout, in particular, could continue to support sterling if it continues to be successful.
A series of PMI data will be released for the UK today and Wednesday, which should give an indication of how the economy performed in January. Mortgage and house prices figures will also be released this week.
