Despite weakening slightly at the end of last week, the pound is at strong levels against the euro and the dollar this morning. This comes ahead of the Bank of England’s latest monetary policy meeting, which is due to take place on Thursday.
It is thought that the Bank will maintain a ‘balanced’ tone at the meeting this week, and any upbeat messages could support the pound. Equally, any surprises or negative thoughts about the outlook for the UK economy could cause sterling to weaken. It’s thought that officials will acknowledge the progress of the vaccine programme and the improving COVID-19 situation.
It’s a quiet week for economic data in the UK. At the end of last week, GDP data released shows that the UK economy shrank less than forecast in January.
