The pound has weakened to multi-year lows against the euro and the dollar after falling yesterday, overnight and this morning. Poor economic data and tensions between the UK and EU over the Northern Ireland protocol contributed to this, as well as the perception that the Bank of England may have lost control of rising inflation.
To add to sterling’s woes, the euro strengthened this morning after the European Central Bank announced an emergency meeting, which is due to take place today. This is to discuss issues surrounding eurozone bond movements.
The dollar is strong ahead of the Federal Reserve’s meeting later today, when officials will announce their latest decision on interest rates. An interest rate hike of 75 basis points is expected.
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