The pound is still at strong levels against the euro and the dollar this morning following high inflation rate data yesterday. It is hoped that this will prompt the Bank of England to take a more ‘hawkish’ stance towards monetary policy and interest rates.
Comments from European Central Bank officials have caused the euro to weaken. Despite confirming in the monetary policy meeting last week that the pandemic bond-buying programme would begin to slow down, ECB President Lagarde said yesterday that she favours continuous fiscal aid to support the economy.
Retail sales figures are due today in the US, expected to show a small decline. This comes as the markets turn their attention to the Federal Reserve’s monetary policy meeting, which will take place next week.
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