After weakening earlier in the day due to increased expectations for a rate cut, the pound recovered slightly yesterday afternoon. Markets are now pricing in a 43% chance for a 25 basis point cut in rates at the end of this month from the current level of 0.75%.
Today, they’ll be a series of data releases for the UK, including inflation rate and the Retail Price Index. Inflation rate is expected to stay the same year-on-year at 1.5%.
It was also reported yesterday that Boris Johnson has formally rejected the request from Scotland’s First Minister, Nicola Sturgeon, for a second referendum on independence. He said that it would “continue the political stagnation Scotland has seen for the past decade”. Sturgeon tweeted that the Conservatives were attempting to “deny democracy” and insisted that “Scotland will have the right to choose”.
