The pound is slightly stronger against the euro and the dollar following better-than-expected inflation figures for the UK, which were released this morning. The higher reading reflects the reopening of the economy, with clothing, fuel and eating out contributing to the boost.
This afternoon, MPs will debate and vote on the government’s decision to extend the current Covid measures for at least four weeks. The extended restrictions are likely to pass, although some opposition is expected from Conservative backbenchers.
All eyes will be on the conclusion of the Federal Reserve’s two-day monetary policy meeting later today. Although interest rates are expected to stay the same, the markets will be listening for any comments surrounding inflation and the US’ economic recovery.
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