The pound is still weaker against the euro this morning after sustaining heavy losses last week. This occurred following the Bank of England and European Central Bank meetings, when BoE governor Andrew Bailey made ‘dovish’ or cautious comments, whilst ECB President Christine Lagarde refused to rule out interest rate hikes this year.
This week, GDP figures will be released for the UK, predicted to show a 1.1% growth quarter-on-quarter and a 6.5% growth year-on-year for the fourth quarter of last year.
Later today, the Bank of England’s chief economist will speak, and this will be followed by a speech from Andrew Bailey on Thursday. The markets will be listening out for any comments surrounding monetary policy following last week’s meeting.
After several Conservative Party backbenchers calling for the Prime Minister to resign, Boris Johnson is expected to make changes to his Downing Street team this week.
