The pound is still strong against the euro and the dollar this morning. High inflation rate data could create a more ‘hawkish’ stance from the Bank of England, meaning that officials may plan to hike interest rates and taper monetary policy soon.
News this morning reveals that the UK, US and Australia have announced a historic security pact, reportedly as an effort to counter China. It will let Australia build nuclear-powered submarines for the first time due to growing concerns about China’s military assertiveness.
It’s a light data for UK data today, but retail sales will be released tomorrow morning, expected to show increases month-on-month and year-on-year.
