With little in the way of data releases to appeal to the market – following the bonanza of good news last week – sterling was left to drift at the start of the week.
This continues the uncertain trend we’ve seen against the euro since early April, although the picture is stronger against the US dollar.
Bank of England governor Andrew Bailey played down the risk of inflation before the Treasury Select Committee yesterday, predicting a rise above 2% by the end of 2021 but “inflation returns to around 2% in the medium term”.
The only data release of note today is CBI Distributive trades survey for May. Indeed that is the only data release for the week.
