After a strong week, the pound weakened on Friday due to changes in the global markets. This morning, it is well supported against the euro and the dollar, but lower than it was towards the middle of last week.
The currency markets have recently been taking their cues from the global bond market, where yields have surged in anticipation of economic recovery and predictions that central banks will have to tighten monetary policy earlier than expected.
All eyes will be on the Chancellor’s Spring Budget this week, which is due to take place on Wednesday. Rishi Sunak is expected to set out the government’s spending plans for the year ahead, including support for business’ and individuals in the wake of the pandemic.
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