The pound is weaker against the euro this morning due to Russia’s pledge to begin withdrawing troops from the Ukraine cities of Kyiv and Chernihiv. The euro has strengthened on this news.
Despite this, Russia’s promises have been met with scepticism. President Zelensky said that while initial signs from the peace talks were “positive”, they do not “drown out” the explosions. US President Joe Biden said, “I don’t read anything into it until I see what their actions are.”
We could, therefore, see further volatility for the euro, pound and other currencies as news surrounding Russia’s pledge unfolds.
Bank of England official, Ben Broadbent, will speak later today and the markets will be listening closely for any comments about the UK economy, rising energy prices and interest rates.
All eyes will also be on German inflation data, which is set to come in at 6.3%.
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