The pound is stronger against the euro and weakened to a two-year low against the dollar this morning. As the gas crisis in Europe worsens, the pound is falling against the dollar, but has managed to retain its strength against the euro.
Although the full affect of gas shortages will be felt by European nations, the UK could suffer too. UK gas prices hit a three-month high yesterday after the gas strikes in Norway. There are also concerns that the UK doesn’t have a major gas storage facility, as this was closed in 2017.
Two Bank of England officials will speak today, and the markets could pick up on any comments surrounding inflation and interest rates. Construction PMI is due to be released this morning, expected to show that the sector slowed slightly in June.
