After strengthening towards the end of last week, the pound is still strong against the euro this morning ahead of a busy week for economic data releases.
The most notable release of the week is UK inflation data, which is due on Wednesday. Inflation is expected to have risen to 8.9% year-on-year in April from March’s reading of 7%. Any surprise figures could impact the pound.
European inflation figures will also be released on Wednesday, expected to show a slight uplift in April. As well as this, the euro could continue to be impacted by any further news of Russian sanctions on European energy companies.
Data released this morning reveals that COVID-19 lockdowns in China have impacted economic growth, and this adds to concerns about the state of the global economy. The dollar has benefitted from its safe-haven status on this news and has strengthened.
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