The pound was weaker at the end of last week due to disappointing GDP figures, which came out on Friday morning. Industrial production released on Friday also missed expectations. However, it has found some strength against the euro and the dollar this morning.
Many economists have cited rising COVID-19 cases as the reason that figures are not living up to expectations. Last week, cases in the UK passed 32,000 for the first time since January.
Inflation rate data will be released for the UK this week. The markets will be watching closely to see if the figure will impact the Bank of England’s view that higher inflation is ‘transitory’.
Employment data will also be released for the UK this Thursday, which could have a bearing on the pound’s movements.
