The pound hit key resistance levels last Thursday and weakened slightly on Friday. Following a strong performance last week, sterling is trading around the same levels as Friday this morning.
Both December’s inflation data and a ‘hawkish’ speech from Governor of the Bank of England, Andrew Bailey, caused the pound to strengthen significantly, before weakening on Friday.
Expectations for a rate hike from the Bank of England could continue to support the pound. However, PMI figures for the UK will be released this morning, which will show how the economy has performed in January so far. The figures are expected to show a slight increase from December, largely due to the decrease of the Omicron variant.
