The pound has made a small recovery against the euro after weakening last Thursday. This was due to a ‘dovish’ tone from the Bank of England’s latest monetary policy meeting, which sparked uncertainty over the Bank’s upcoming plans for interest rate hikes.
The Chancellor will reveal his Spring Budget on Wednesday and the pound could be impacted by any update on the state of the UK economy. Amid rising energy prices and a cost-of-living crisis, the Budget is expected to cover tax changes, financial support and national insurance.
The euro could react to several speeches from European Central Bank officials throughout the week. The markets will be listening out for comments surrounding inflation and the impact of the war in Ukraine on Europe’s economy.
Central bank speeches are also expected across the pond, with Federal Reserve Chair, Jerome Powell, due to speak later today. A series of summits will take place this week between President Joe Biden and EU governments to discuss a potential oil embargo on Russia.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
