The pound has tumbled against the euro and the dollar following the Bank of England’s decision to raise interest rates by just 0.25% yesterday.
Markets had priced in a larger rate hike, so the minimal increase caused major losses for sterling, which has fallen by over 1% against the euro and over 2% against the dollar.
Yesterday also saw local elections take place across the UK. While many areas are still awaiting results, early results show that the Conservatives have lost control of several key London councils, including Westminster, Barnet and Wandsworth.
Today, the main focus will be the US non-farm payrolls. This follows yesterday’s initial jobless claims figures, which came in higher than expected, and will give a further indication of how the American economy is faring.
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