020 7898 0500The pound strengthened against the euro on Monday, mainly because of political and economic worries in the Eurozone and last week’s better-than-expected manufacturing and trade data in the UK.
Yesterday was a quiet start to a very busy week in terms of economic data. However, today isn’t just Valentine’s Day in the markets but inflation day.
That’s because one of the key economic figures will be released later today. The headline consumer price index, the Bank of England’s preferred measure, is expected to move closer to its target of 2%, hitting 1.9% (last month: 1.6%). Although the Bank of England has stated that it might overlook inflation data for the time being given the uncertainties around Brexit, the markets will see it as an indicator of future interest rate hikes.
