The pound weakened slightly this morning on reports yesterday in the Guardian that Conservative-Labour talks have broken down, although Labour has denied the story. In positive news, UK employment figures showed a slight decrease on Tuesday by 27,000 to 1.34 million, although unemployment claimants did rise.
Today, the main story will be the month-on-month and year-on-year inflation rates, with the latter expected to come in within the Bank of England’s target of 2%. If it does exceed, it could lead to higher interest rates – which could help to push the pound higher.
