Sterling strengthens against the euro following the latest developments in the Ukraine war, and ahead of the BoE’s interest rate decision tomorrow. However, against the dollar, sterling is weaker compared to this time last week.
It has been a quiet week so far as Britain mourned the passing of its monarch, Queen Elizabeth II, however later this morning the UK will see whether the Confederation of British Industry’s (CBI) ‘s order book meets expectations of a decline. The UK’s industrial output is expected to fall for a second time to -15 in today’s data, following a fall to -7 in the previous release . The CBI’s lead economist Alpesh Paleja said “its not surprising to see orders and activity ebb away as we move through the year” due to high input costs and the current economic downturn.
The Bank of England’s interest rate decision will be one to watch tomorrow, as after 6 consecutive rate hikes (and with the last pushing borrowing costs to the highest Britain has seen in 13 years) the BoE are expected to raise rates again during tomorrow’s lunch time meeting.
