The pound is stronger against the euro and the dollar this morning as there wasn’t an interest rate cut from the Bank of England yesterday, as some had feared.
Incoming Bank of England Governor, Andrew Bailey, said that any measures made by the Bank would be done in tandem with the government. He also added that they will need “more evidence” before taking action.
Nevertheless, markets are currently pricing in a 50% chance of an interest rate cut at the next BoE meeting at the end of this month. It’s also worth noting that sterling remains vulnerable to EU-UK trade talks.
Services PMI data was released yesterday, coming in at 53.2. This was nearly in line with expectations but down from 53.9 last month.
