The pound is trading around the same levels against the euro and has weakened slightly against the dollar this morning.
Expectations for interest rate hikes from the Bank of England had supported the pound at the beginning of this year. However, due to the Ukraine conflict and the economic ramifications of this, expectations for rate hikes have fallen, which is now weighing on sterling.
Data released this morning showed that UK house prices have jumped by 12.6% year-on-year in February and 1.7% month-on-month.
Later today, Bank of England official, Sir John Cunliffe, will speak. Any rhetoric about the Bank’s plan for interest rate hikes this year could impact sterling.
