After weakening against the euro and the dollar over Tuesday and Wednesday, the pound has made some attempt at recovery overnight and this morning.
The markets now look ahead to the Bank of England’s monetary policy and interest rate decision, which is due to be announced around midday today. An interest rate hike of 25 basis points is expected. If this occurs, it may not have an impact on sterling as it is already ‘priced in’. However, a larger hike could give the pound a boost.
There will also be focus on comments from officials, especially following the poor economic data that was released for the UK earlier this week.
