Following the Bank of England’s monetary policy meeting last week, the pound weakened before making a recovery on Friday. It is still attempting to recover this morning ahead of a week full of key data releases.
The main data release of the week will be UK inflation figures on Wednesday. Inflation is predicted to have risen to 9.1% in May, but any surprise figures could impact the pound.
Sterling could also be impacted by the global markets. A series of interest rate rises over the past week has prompted concern that some economies could fall into recession over the coming months. This could cause the global stock markets to fall in the coming days.
Federal Reserve Chair, Jerome Powell, will testify in front of the US Senate on Wednesday and Thursday. The markets will be listening for any hint of another interest rate hike of 75 basis points in July.
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