After a weekend of hints on interest rates that saw sterling soar, the pound gradually lost strength over the day against the euro. Against the US dollar, however the direction remains positive, with a swing of around 3% on the lows of late September.
The big data release of the week is tomorrow morning, with the inflation figures for September. There are some big releases towards the end of the week too, with CBI Industrial trends on Thursday, then retail sales and the first (“Flash”) reading for Markit PMI for October on Friday.
All will be seized on by the markets for clues on the post-pandemic recovery and its effect on inflation.
