The pound has strengthened against the euro and is volatile against the dollar this morning following data releases from the UK and US.
UK GDP data released earlier showed that the UK economy grew by 7.5% in 2021, the fastest annual rate since the Second World War, despite the pressures of the Omicron variant.
In the US, inflation reached a 40-year high which has further increased expectations that the Fed will raise interest rates in March. One Fed official also expressed support for a March hike yesterday.
Meanwhile, in the eurozone, the European Commission has adjusted some of its forecasts as soaring energy prices and inflation continue to weigh on the economy.
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