"The Bank of England Governor Andrew Bailey is feeling more and more pressure to act to tighten monetary policy in light of rising inflation. He remains stoic in his determination to continue to support the economy, which he considers still to be at risk.

He is basing his desire to continue with bond purchase and historically low interest rates around the fact that Government support is slowly being withdrawn and that could have a significant effect on growth.

Employers are being expected to contribute more to the furlough scheme, and that will in all likelihood lead to a rise in businesses closing their doors permanently. There has been speculation for some time that without support, many firms are simply not viable.

The change in working practices that is seeing many businesses adopt a hybrid policy for working from home versus attending the office will also have a knock-on effect on support businesses. Cafés and coffee shops are the obvious victims, but there is a whole support structure that will see its customer base permanently decimated."

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.