The pound weakened to a 7-week low against the euro earlier this morning. It’s thought that this was partly down to the resignation of the Bank of England’s Chief Economist, Andy Haldane, a ‘hawkish’ member of the Monetary Policy Committee and one of the Bank’s most prominent figures.
Signs of improvement with Europe’s vaccine programme are helping the euro against both the dollar and the pound. France, Italy and Germany have all reported an uptick in vaccines administered over the past week, with France administering over 500,000 doses last Friday alone.
In the US, data released yesterday showed that consumer prices rose more than expected, mainly due to a surge in gasoline prices. However, it’s unlikely that this will change the Federal Reserve’s approach to monetary policy.
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