The pound is still in a strong position against the euro and dollar this morning, after strengthening throughout the course of last week due to falling COVID-19 cases in the UK.
This week, the markets will be taking queues from the Bank of England’s latest monetary policy meeting, which will take place on Thursday. Whilst interest rates are expected to be kept the same, any ‘hawkish’ comments from officials that suggest monetary policy could be tightened earlier than expected could give the pound a boost.
Equally, if COVID-19 infections continue to fall this week, the pound could strengthen. Global pandemic situation and market movements could also have an impact on sterling.
There will be a series of PMI data releases this week, starting with manufacturing PMI for July this morning.
