Sterling has started to make a small recovery against the euro and the dollar after weakening at the end of last week. Bank of England official, Huw Pill, will speak later today and the markets will be listening closely for any comments surrounding the economy, interest rates and monetary policy.
The euro is still in a strong position against the dollar after its boost following comments from the President of the European Central Bank last week. Data released this morning revealed that imports from the UK into Germany fell by 8.5% last year, with Brexit and the pandemic cited as the causes.
The dollar is slightly weaker ahead of US inflation figures tomorrow. Inflation is expected to rise and this may boost expectations of an interest rate hike from the Federal Reserve.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
