The pound recovered slightly against the euro yesterday but has edged lower again in the evening and this morning.
This could be due to decreasing expectations of an interest rate hike at the Bank of England’s monetary policy meeting next week. The emergence of Omicron suggests that officials will be more cautious when deciding to raise the interest rate, although some are still warning that inflation could continue to rise.
It’s a light day for data releases in the UK today. Yesterday, data showed that retail sales increased by 1.8% in November on a like-for-like basis from a year earlier, increasing from a 0.2% fall in October as consumers started shopping early for Christmas.
