The pound has strengthened against the euro and the dollar this morning following positive data. However, tensions in Eastern Europe continue to be the main driver of currency movements.
Russia continues to deny plans to invade Ukraine, accusing the West of hysteria, but is yet to show signs of withdrawal. US President Joe Biden has said Russia is looking for an excuse to invade and the US Ambassador to the UN said: “the evidence on the ground is that Russia is moving toward an imminent invasion. This is a crucial moment”.
This morning, retail sales have rebounded sharply and faster than expected, rising 1.9% in January, despite the rising cost of living. Much of this rise was a result of increased spending at non-food stores such as household goods and garden centres.
