The pound has weakened further this morning against the euro, after falling another 0.3% or so yesterday. Its losses over the past week now are close to 2%.
Against the dollar it has been more patchy, steadying after last week’s significant losses.
There were no data reports yesterday, but this morning we have heard that unemployment in January was 3.9%, even lower than expectations and with average earnings including bonuses rising by 4.8%. This is, however, below inflation and represents a net loss in income for most households.
Tomorrow will be the US Federal Reserve’s interest rate decision, and less than 18 hours later will come the Bank of England’s.
