The pound is strong against the euro and the dollar this morning. This is possibly due to a recovery in the global markets, which sterling tends to move in tandem with. The Bank of England’s fairly positive monetary policy meeting last week has also improved the outlook for the pound.
Sterling was on track for its biggest daily fall since June on Friday against the dollar. After starting the day in a relatively strong, the pound weakened against the dollar, as the greenback gained strength due to its safe-haven status. Sterling remained strong against the euro, however.
It’s a busy week of data for the UK this week, with GDP figures coming out on Wednesday. The figure is expected to show that the economy shrank by 20.2% in the second quarter of this year. Industrial and Manufacturing Production figures will also be released. It’ll be interesting if they reflect the Bank of England’s comments last week, which were more positive than expected.
