Sterling strengthened against the euro yesterday, and the US dollar. This was in line with an increase in UK bond yields, that are themselves reflective of worries about inflation going beyond the bounds that the Bank of England believes acceptable.
While this morning those gains on USD have been reversed, sterling continues to advance against the euro.
There is little on the data front to guide the markets in the early part of this week, but we do have some mortgages and consumer credit tomorrow morning – plus another speech by Andrew Bailey – and then house prices, business investment and the final reading for GDP in Q2.
