The pound made a recovery and strengthened against the euro and the dollar at the end of last week and is still strong this morning. This was mainly due to euro movements after comments from European Central Bank officials.
The main event for the markets this week is set to be UK inflation figures, which will be released on Wednesday. The year-on-year figure is expected to stay the same in January at 5.4%. However, any surprises could impact the pound. Both the US and the E have seen higher-than-expected inflation figures for January, so the UK could see the same.
This week will conclude with retail sales figures on Friday, which are expected to have improved in January.
