The pound is weaker against both the euro and the dollar this morning as the uncertainties of the week ahead weigh. On Saturday evening, it was announced that England will enter a month-long lockdown from Thursday, which is starting to put pressure on sterling as the markets assess the economic impact. This has overshadowed positive Brexit developments which manifested at the end of last week.
The Bank of England’s monetary policy decision will also take place on Thursday. The Bank is already expected to increase its quantitative easing target and considering the latest lockdown measures, it will be interesting to hear if there is any further discussion surrounding negative interest rates.
A series of Purchasing Manager’s Index (PMI) data will be released today and Wednesday, which measures growth in the services and manufacturing industries.
