The pound is trading around the same levels against the euro this morning but is weaker against the dollar.
It is thought that the pound will continue to strengthen against the euro in the long run due to the divergence between the actions of the Bank of England and the European Central Bank, however, short term risks remain, such as falling market sentiment.
It’s a quiet day for UK data today, however, consumer confidence figures for August will be released tomorrow morning. Although the reading is expected to stay the same as last month, this would still signal that there is optimism amongst consumers about the UK economy.
Retail sales figures will also be released, expected to show a 6% growth year-on-year.
