The pound saw an initial boost yesterday after the Bank of England hinted at an early end to its quantitative easing measures and a rise in interest rates, however, sterling has since lost some strength this morning.
BoE policymaker Michael Saunders advised the Bank to take action as interest rates continue to rise, suggesting that “with the current policy stance, CPI inflation will remain above the 2% target 2-3 years ahead”.
Later this morning we will see inflation figures for the eurozone, which are expected to remain largely unchanged.
In the US, the dollar is benefitting from a cautious market mood. Federal Reserve Chair Jerome Powell testified again yesterday but maintained his stance on keeping monetary policy unchanged saying any such move is still “a ways off”.
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