The pound reached its highest level against the euro since June 2016 this morning. However, it is weaker against the dollar ahead of what looks to be an eventful week.
The currency markets continue to be driven by the Ukraine conflict, with the euro suffering against most currencies. The European Central Bank will hold its March monetary policy meeting on Thursday and it will be interesting to hear if officials express the need for a change in policy due to the invasion of Ukraine.
Oil prices have risen to the highest level since 2008 following reports that the US and other countries are discussing a ban on Russian oil supplies.
The dollar continues to benefit from its status as a ‘safe haven’ currency, typically strengthening in time of crisis. After a strong non-farm payrolls report at the end of last week, the markets will look to US inflation figures this week.
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