After weakening at the end of last week following the Bank of England’s monetary policy meeting, the pound has made some recovery at the start of this week.
Inflation figures are due for the UK on Wednesday and sterling could react to any surprises. If inflation is higher-than-expected, sterling could benefit from this. However, following comments from Bank of England officials last week, there is uncertainty over when and how often interest rates will be hiked this year.
Bank of England Governor, Andrew Bailey, will speak on Wednesday and the markets will be listening out for any comments on interest rates and the UK’s economic outlook.
