The pound is strong against the euro this morning, reaching near 20-month highs due to a mixture of sterling strength and weakness from the single currency. Higher-than-expected inflation figures released last week lifted the pound and it has been trading around strong levels since.
This week, a mixture of economic data releases and speeches from Bank of England officials could impact sterling. PMI figures for the UK will be released tomorrow, which will give an indication of how the UK economy has performed in November so far. Figures are expected to come in slightly lower than October.
On Thursday, Bank of England official; Jonathan Haskel and Governor Andrew Bailey will speak. The markets will be listening closely for comments on last week’s inflation figures.
