Sterling joined the euro in shooting upwards against the US dollar, gaining well over 1% on USD.
However, overall the pound remained stable as interest rates were held at 5.25% and Andrew Bailey insisted that interest rate drops were a long way off. “There is still some way to go,” he warned on inflation. “We’ll continue to watch the data closely and take the decisions necessary to get inflation all the way back to 2%.”
The heavy-hitting data continues to arrive, with GfK Consumer Confidence last night showing a small improvement on last month but a much better outlook than last Christmas.
Coming up this morning we’ll see a flash reading for S&P Global/CIPS PMI. Services for the UK have been in positive territory of 50+, but will that continue?
On Wednesday will be the all-important inflation reading. Another steep(ish) fall to 4% is expected.
GBP/EUR past year
