Tuesday is relatively quiet on the economic front, with only one major event scheduled. The highlight of the day will be Bank of England Governor Andrew Bailey’s speech at 14:25. His comments are expected to attract significant attention, particularly following the recent unexpected decline in UK inflation.
Investors will be keen to hear Bailey’s thoughts on how this inflation report might impact interest rate decisions for the remainder of the year. Speculation is rife that the report could influence future monetary policy.
Later in the week, the UK’s economic data releases continue with the Purchasing Managers’ Index (PMI) on Thursday. A slight decline in the PMI is expected, with forecasts suggesting a dip to 51.4 from 51.5, indicating marginally slower growth in the UK economy.
In the currency markets, the pound has extended its decline against the US dollar for three consecutive weeks. This sustained weakness may present an opportunity for those looking to sell dollars, as the exchange rate favours dollar holders.
Meanwhile, the pound has been holding its ground against the euro, hovering near yearly highs. This stability reflects the ongoing resilience of the pound in the face of mixed economic signals.
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