The pound has weakened against the euro and the dollar following the latest inflation figure for the UK.
Inflation rose to 9.1% in May, up slightly from April’s figure of 9% and a fresh 40-year high. The Bank of England has warned that inflation could hit 11% later this year.
However, there may be signs that core inflation – which excludes external influences such as global fuel and commodity prices – is peaking.
In the eurozone, European Central Bank Chief Economist, Philip Lane, revealed that the Bank is considering a larger hike of 75 basis points in September. There will be more speeches from ECB officials today.
The main focus for today will be Federal Reserve Chair Jerome Powell’s testimony starting at 3pm UK time. He will speak today and tomorrow in front of the US Senate, and markets will be listening for any hint of another interest rate hike of 75 basis points in July.
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