The pound strengthened against the euro and the dollar following the release of government’s cost-of-living plan last week and is trading around the same levels this morning.
It’s a fairly quiet week for UK economic data releases, however, the markets will be looking to housing data and manufacturing PMI figures released on Wednesday.
Oil prices have hit a two-month high this morning due to expectations that EU leaders will agree new sanctions on Russian oil today. After talks yesterday and today, heads of state will need to agree unanimously to the sanctions.
The euro is stronger against the dollar, benefitting from expectations that the European Central Bank will take a more hawkish stance towards monetary policy in upcoming meetings.
In contrast to this, the dollar is suffering due to a shift in stance from the Federal Reserve and a more positive global risk environment, largely brought about by news that China is easing Covid-19 restrictions.
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