The pound is stronger this morning, recovering against the euro and the dollar towards the end of last week. This week, all eyes will be on Wednesday’s inflation data for the UK. Although the year-on-year figure is expected to stay the same at 5.4%, any surprises could impact sterling.
Comments from European Central Bank official, Philip Lane, last Thursday have caused the euro to weaken. His speech put a dampener on expectations for several interest rate hikes this year and suggested that high inflation is transitory. President of the ECB, Christine Lagarde, will speak later today and it will be interesting to hear if her comments are in line with this.
The Federal Reserve will release the minutes from its latest monetary policy meeting on Thursday. The markets will be looking out for any signs that interest rates could be hiked more aggressively than expected this year following higher-than-expected inflation figures.
Concerns over imminent Russian military action in Ukraine have caused the European markets to fall this morning. Ukraine has called for a meeting with Russia in the next 48 hours.
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