The pound is still strong against the euro this morning, trading around 18-month highs as it continues to benefit from the Bank of England’s monetary policy meeting last week. Following comments from officials, there is now a strong expectation that the BoE could tighten policy ahead of the European Central Bank.
GDP data for the UK will be released tomorrow, which is expected to have grown by 4.8% quarter-on-quarter in the second quarter of this year. Any surprises could have an impact on sterling.
In the US, all eyes will be on CPI figures, which are due to be released later today. This inflation data could indicate when the Federal Reserve decides to taper monetary policy and hike interest rates.
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