After weakening sharply against the euro and the dollar yesterday, the pound recovered this morning and hit a 13-month high against the euro. However, volatility could remain during the build up to the Bank of England’s latest monetary policy meeting, which is due to take place tomorrow.
The Federal Reserve will conclude its monetary policy meeting today. Economic growth forecasts are expected to be upgraded due to the US’ efficient vaccine rollout and President Biden’s huge $1.9 trillion stimulus bill.
Concerns over the Oxford-AstraZeneca vaccine continue in Europe, with countries seeking clarification on its safety and the suspensions causing a lag in the vaccine rollout. The European Medicines Agency is due to deliver its verdict on the vaccine’s safety tomorrow.
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