Sterling is trading well above the level of last week against most currencies, but not the US or Canadian dollars. The strength of the pound against the euro is largely based on the relative potential for further rises in interest rates from the ECB and BoE, following the UK’s high inflation figures last week.
Against the dollar, sterling is at its lowest since the Trump presidency ended in early November 2020.
Data-wise, we’re being eased into the post-Easter period gently, with no data releases of note until Friday, with retail sales for March, which are expected to pick up, and a first reading for S&P Global/CIPS PMI.
However, there will be several speeches by members of the Bank of England on Thursday, which may give hints to future economic policies.
