The pound is still trading around strong levels against the euro this morning but has weakened against the dollar, mainly due to greenback strength.
Expectations for a Bank of England interest rate hike next week continue to support sterling. The pound has, so far, been largely unaffected by the political turmoil in Downing Street, but any significant actions after the publication of Sue Gray’s report, such as an increased possibility of a vote of no confidence in the Prime Minister, could cause volatility.
The economic data calendar is fairly empty in the UK for the rest of the week, however, CBI Distributive Trades, which measures the health of the retail sector, will be released later today.
