The pound experienced volatility yesterday, declining sharply against both the euro and the dollar. However, it has recovered this morning and is now at strong levels.
It’s thought that the drop yesterday was due to the Bank of England’s upcoming monetary policy meeting, which is due to take place tomorrow. There has been a lack of sterling-positive information in the run up to this meeting, which is perhaps why the pound weakened yesterday.
The meeting will take place at midday tomorrow and the Bank is expected to keep interest rates on hold. The markets will be looking out for any comments relating to the UK’s economic outlook.
