The pound trading at similar levels against the euro and dollar this morning, ahead of the Bank of England’s latest interest rate decision later.
The Bank will announce whether they are leaving quantitative easing measures as they are, or whether they are boosting or reducing them. The comments surrounding this decision will also be monitored closely by the markets. If officials present a positive view of the UK economy, the pound could strengthen. However, a cautious or negative tone could have the opposite effect.
Investors will also be looking out for any indication that the Bank will upgrade its growth outlook for the UK economy, considering the success of the vaccine rollout and the easing of restrictions.
Ahead of the BoE announcement, services and composite PMI data will be released, which will reveal how the services and manufacturing sectors fared in April.
