The pound is still strong against the euro this morning and at fairly strong levels against the dollar due to increasing expectations that the Bank of England will raise interest rates next month.
The market odds of an interest rate hike on February 3 rose to 90% after inflation figures for the UK were released yesterday. They showed that inflation rose to a 30-year high in December, with rising prices across the board. In order to control high inflation, the Bank could raise interest rates soon.
Political turmoil continues in Downing Street, with an unknown number of Conservative MPs submitting letters for a vote of no confidence in the Prime Minister. The House of Commons is still waiting Sue Gray’s official report on the illegal gatherings at number 10.
