After weakening on Tuesday, the pound has recovered a little against the dollar but is still trading around similar levels against the euro.
Governor of the Bank of England, Andrew Bailey, spoke yesterday. Whilst he didn’t explicitly comment on the effects of the Omicron variant or on the possibility of an interest rate hike, he said that “there are still impacts that we are feeling from COVID quite strongly…”
“Even now, services are recovering but we have still got quite a long way to go. That has put quite a strain on supply chains around the world.”
Yesterday, the British Retail Consortium said overall shop prices increased in November at their fastest pace since May 2019.
It’s a light day for economic data releases in the UK today. However, PMI figures will be released tomorrow and there will also be a speech from Bank of England official Michael Saunders.
