Sterling has strengthened against the euro this morning following the release of UK inflation figures.
Inflation came in higher than expected both month-on-month and year-on-year in December – the annual figure reaching its highest level since 1992. This has increased expectations for a rate hike from the Bank of England next month and so has caused the pound to strengthen.
Bank of England Governor, Andrew Bailey, will speak later today and the markets will be listening closely for any comments surrounding inflation.
Meanwhile, political turmoil in Downing Street continues, with reports suggesting that a group of Conservative MPs are preparing letters of no confidence.
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