The pound has weakened against the euro and the dollar this morning as markets await the Bank of England’s monetary policy meeting on Thursday.
Markets will be listening for any comments on imminent interest rate hikes. This comes after Chancellor Rishi Sunak said in his Budget that the Bank has a responsibility to control inflation.
Despite British Prime Minister Boris Johnson meeting with French President Emmanuel Macron at the weekend to discuss the growing tensions over post-Brexit fishing rights, a solution has not yet been reached.
Tensions between the UK and EU over Northern Ireland has also escalated with European Commission Vice-President Maros Sefcovic saying he was “increasingly concerned” that the UK was embarking on “a path of confrontation”. These conflicts threaten the pound’s strength.
