The pound is at its strongest level since February 2020 this morning against the euro and is also strong against the dollar. This is due to comments made yesterday by Bank of England Governor Andrew Bailey.
Bailey said yesterday that inflation could stay higher due to a surge in energy prices and the Bank will need to act if necessary. The markets have interpreted this as a clear sign that interest rates will be hiked soon.
Inflation data will be released for both the UK and eurozone this week, with UK inflation expected to say the same annually and eurozone inflation expected to rise. PMI figures will also be released for the UK, US and Europe on Friday, indicating how each economy performed in October.
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