After a positive start to the week, the pound is weaker this morning due to a fall in the global markets. Sterling tends to move with market sentiment, meaning that this market decline has been mirrored by the pound.
The fall in the global markets has come about due to rising COVID-19 cases, specifically in India and Japan. Hospitals in India are struggling to cope, whilst a state of emergency has been declared in Japan ahead of the Olympics in Tokyo this summer.
A series of data was released for the UK this morning, including the inflation rate for March, which came in at 0.7%. This came in slightly below forecasts of 0.8% but higher than February’s reading of 0.4%. The rise was mainly due to an increase in prices for motor fuels, however this was offset by lower food prices.
The Bank of England has forecast that inflation could reach 1.9% by the end of this year.
