Sterling is trading around the same levels as at the end of last week, ahead of speeches from Governor Andrew Bailey today and Wednesday. The markets will be listening for any comments about monetary policy following the Bank of England’s meeting last Thursday.
The euro has weakened slightly this morning following the preliminary results of the German election, which revealed that the centre-left Social Democrats have narrowly beaten Angela Merkel’s CDU/CSU party. Talks will now begin to form a coalition, which could take several months.
In the US, a series of Federal Reserve officials will speak and Fed Chair, Jerome Powell, will testify in front of Congress this week. Any further information about the timeline for tapering monetary policy and hiking interest rates could impact the dollar.
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