The pound has recovered a little against the dollar but is still trading around weaker levels against the euro this morning. Despite this, it is only marginally off its highest point since the pandemic began.
In a speech yesterday, Governor of the Bank of England, Andrew Bailey, said that we have “still got quite a long way to go” to recover from the economic impact of the pandemic. The financial markets have now decreased their expectations of an interest rate hike this month due to the new Omicron variant, and now see a two thirds chance of a rate rise.
Several European Central Bank officials will speak today and tomorrow following the record inflation reading for the eurozone. The markets will be listening closely for comments surrounding this.
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