The pound is still weaker against the dollar this morning but has begun to recover against the euro. Worries about high inflation and a potential recession are helping the dollar and weighing on sterling.
At the European Central Bank’s forum yesterday, Bank of England governor, Andrew Bailey, said that a larger interest rate hike could be “on the table” at the central bank’s next meeting in August. The markets will be listening closely for any further confirmation of this over the coming weeks.
Data released this morning reveals that UK house price growth slowed slightly in June as a result of the current economic uncertainty. However, prices are still growing at a pace of 10.7% and the average price of a UK home climbed to a record high.
Later today, inflation data for France and personal spending data for the US will be released.
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