The big talking point from yesterday was that the UK inflation rate came in higher than expected at 3%. It had been forecast to drop to 2.9% but it wasn’t to be. Year-on-year, the retail price index also came in below expectations at 4% (4.1% had been forecast). Despite this, sterling managed to strengthen against the dollar, possibly because of expectations of an interest rate rise by the BoE.
It is extremely quiet today for UK economic data and so attention will likely be on the eurozone and US. Having said this, we might hear more of what Theresa May has to say about Brexit which could cause some volatility.
From To