Sterling has strengthened against both the euro and the dollar following the release of UK inflation figures this morning.
Inflation in the UK surged to 5.1% year-on-year in November largely due to rising energy prices and supply chain disruptions. The price of fuel has increased notably, but the rise has also been driven by clothes, food and second hand cars.
Following this, all eyes will now be on the Bank of England’s monetary policy meeting tomorrow, where officials will consider both rising inflation and the economic uncertainty surrounding the Omicron variant.
The Federal Reserve’s monetary policy meeting will conclude this evening and any surprises could impact currencies.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
