The pound has hit a 10-week high against the euro and is still strong against the dollar. This is due to euro weakness and also occurred after Jerome Powell’s speech at Jackson hole yesterday, which indicated that the Federal Reserve would continue to provide monetary support for the US economy for a while.
The Governor of the Bank of England, Andrew Bailey, will make a speech at Jackson Hole today. Markets will be looking for any views on negative interest rates, which are being considered by the Bank. Any signs that the Bank would be in favour of this could have an impact on sterling.
Will unemployment rising in the UK, it will also be interesting to see if he comments further on the end of the furlough scheme in October.
