The pound is still strong against the euro and the dollar this morning due to signs of strong economic growth and hopes that interest rates can be raised in the near future.
UK GDP data for July was released on Friday, revealing that the economy showed minimal growth. However, the reasons for this, which include the so called ‘pingdemic’, are largely in the past, meaning that analysts are optimistic that the August GDP figure will be stronger.
Expectations for an interest rate hike are increasing after Governor of the Bank of England, Andrew Bailey revealed that half of the monetary policy committee members thought an interest rate rise would be needed soon. This has raised hopes that rates could be hiked before our European and American counterparts.
The markets will be watching UK inflation rate figures closely, with the latest reading due to be released on Wednesday.
