US inflation data was line with expectations on Friday meaning no volatility ensued. Versus the Dollar the Pound still looks weak but the selling off has halted for now. Outside of a global news story we're not expecting much movement ahead of the FED's interest rate decision on Wednesday.
Wednesday will probably be the start of 24 hours of volatility for the Pound as the inflation numbers come out. This will then have a knock on effect to Bank of England interest rate decision on Thursday. Omicron will be pushing the Monetary Policy Committee to keep interest rates where they are, but a high inflation number could push the committee the other way. Certainly an interesting week ahead.
Against the Euro it's a similar story. The rate is towards the bottom of the years range but only marginally so. Again we're not expecting fireworks ahead of Wednesday and Thursday unless more information becomes available over Omicron or a tightening of travel restrictions.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
UK: Tuesday 07:00 Employment data and unemployment rate