After weakening slightly on Friday, the pound is trading around the same levels against the euro and the dollar this morning. It’s a light week for economic data in the UK, however, PMI figures are due later today, which will indicate how the UK economy has performed in January.
The Prime Minister has an important week ahead, as civil servant Sue Gray is expected to publish her report looking into the allegations of lockdown parties at Downing Street. Six Conservative MPs have, so far, publicly stated ‘no confidence’ in the Prime Minister.
The markets will be turning their attention to the Federal Reserve’s interest rate decision this week, which is due to take place on Wednesday. It is thought that officials will pave the way for a rate hike in March.
Tensions in Ukraine continue, with the UK withdrawing some embassy staff. Russia still denies any plans for military action. Over the weekend, Deputy Prime Minister, Dominic Raab, said that it was “unlikely” that British troops would be sent to Ukraine.
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