The pound weakened to multi-year lows yesterday against both the euro and the dollar. This was due to a mixture of factors, including poor UK economic data, tensions between the EU and UK, as well as the perception that the Bank of England has lost control of rising inflation.
The Bank of England will meet tomorrow to announce its next decision on interest rates. An interest rate hike of 25 basis points is expected, which is minimal in comparison to the Federal Reserve’s expected announcement of a 75-basis points hike.
The economic data calendar is empty for the UK today, so all eyes will be on the Bank of England’s meeting tomorrow.
