The Pound has stayed strong against the Euro and made further gains against the Dollar. The Bank of England’s interest rate decision and monetary policy statement are due at midday. No change is expected although comments from Governor Bailey and other MPC members today will impact which way the Pound is likely to go.
The Euro remains fragile as the suspension of the AstraZeneca vaccine in some European countries has raised concerns that economic growth on the continent will be hindered. ECB President Lagarde will be speaking this morning which could cause some short-term volatility.
Yesterday evening, the Federal Reserve kept interest rates on hold and suggested that there is no rush to implement a rate hike through to 2023. This led to the Dollar weakening across the board against both the Pound and Euro.