Good afternoon,

Headlines continue to be dominated by the ongoing conflict in Ukraine, with reports this morning that bilateral talks between Russia and Ukraine have become “more realistic”, according Ukraine President Volodymyr Zelensky. This news has supported the euro pushing GBP/EUR under 1.19, down from highs of 1.21 earlier in the month.

We have the Bank of England’s interest rate decision tomorrow at midday. The consensus is that we will see further hikes to 0.75%. UK inflation continues to rise at record levels – something the Bank of England can’t ignore.

Later today at 18:00 GMT we have the US Fed’s interest rate decision. The market has been expecting a 25-point hike for some time now so it is unlikely to turn any heads. Inflation is at the highest level in 40 years with prices increasing by 7.9% for the year through February. Markets will look to see where the Fed governors see the terminal rate to be over the next few years, as today is seen as the first step in the interest rate tightening cycle.

Have a good day.

Josh Saunders, Senior Relationship Manager.

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