020 7898 0500A tough day for sterling saw it fall across the board on Monday, despite comments from members of the Bank of England (BoE)’s Monetary Policy Committee (MPC) that an interest rate hike would be needed “well before” inflation reaches 2%.
Along with the belief that the case to raise rates was building, despite current low inflation, sterling did receive some support throughout early morning trading – before struggling throughout the day thanks to a lack of fundamental data from the UK weighed on the currency.
Today we see the release of UK inflation figures throughout July. With dampened consumer spending, we expect to see this figure remain at 0%; any surprise rise above this will be gladly received by sterling investors, and could see the currency appreciate.
