After weakening to multi-year lows against the euro and the dollar earlier this week, the pound has started to recover overnight and this morning.
This comes ahead of the Bank of England’s latest monetary policy meeting and interest rate decision, which will be announced around midday today. The markets are expecting an interest rate hike of 25 basis points, so if the rise is greater or smaller than this, the pound could be impacted.
Sterling could also be affected by comments and rhetoric from officials, especially as the meeting follows a series of disappointing economic data releases.
The markets are digesting the Federal Reserve’s interest rate decision, which was announced yesterday. Officials hiked the interest rate by 74 basis points and the dollar has strengthened this morning.
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