After strengthening against the euro over the course of yesterday, the pound has weakened slightly this morning and remains weaker against the dollar.
The cause of this volatility was the European Central Bank’s latest interest rate decision in which President Christine Lagarde indicated that there would be a 25 basis point rise next month.
Fuel prices in the UK hit a record high yesterday with the average family car costing over £100 to fill. Driving groups have called on the government to provide more support for drivers.
There are no data releases in the UK today, so markets will now be looking to next week’s Bank of England interest rate decision. A hike of 25 basis points is expected, which would bring the interest rate to 1.25%.
