The pound reached a new 8 month high against the euro yesterday and is still strong against the euro and the dollar this morning. The UK’s speedy vaccine rollout, which has fuelled hopes of a quicker economic recovery, is supporting the pound.
The Bank of England will hold their latest monetary policy meeting tomorrow. Governor Andrew Bailey has pushed back on speculation of negative interest rates. However, it will be interesting to hear if the prospect of moving rates into negative territory is mentioned.
PMI data for the services and manufacturing industries will be released this morning. The figures will paint a picture of how the UK economy fared in January.
