Sterling fell yesterday after dovish outlook from the Bank of England GBP The pound fell yesterday after a dovish outlook from Bank of England Governor Andrew Bailey weighed on the currency. Governor Bailey repeatedly outlined the risks in both directions regarding the central bank’s outlook, and that the BoE was beginning to see evidence of a slowdown in the UK’s economic growth. Bailey also highlighted the need for monetary policy tightening, but that moving too fast could see risks on both sides. The BoE attempted to reign in more hawkish expectations from investors, stating that a modest approach to policy tightening would be required in the coming months. Figures indicating that public fears of further inflation rises are at a record high, therefore supporting the BoE’s stance. A survey conducted by US bank Citi and polling company YouGov showed public expectations hitting a 6.1% high. Looking to the week ahead for Sterling, GDP growth figures for the fourth quarter are currently forecast to remain unchanged on Thursday. A steady growth rate could prevent further losses for Sterling. Speeches from multiple BoE policymakers could also help bolster the currency. EUR The Euro is trending higher against many of its rivals today. An optimistic mood surrounding the war in Ukraine is likely helping to boost the single currency. An uptick to German bond yields is also bolstering EUR. Renewed hopes for ceasefire talks between Ukraine and Russia are likely keeping the Euro buoyed today. Speaking in a video interview, Urkaine’s President Volodymyr Zelenskiy signalled that he would be willing for Ukraine to become a neutral state following a countrywide referendum. Additionally, Zelenskiy hinted that he would be willing to speak with Russia regarding the status of the Donbas region. Fresh talks are due to be held between the two sides in Turkey today. Inflation figures for both Germany and the Eurozone are forecast to rise on Wednesday and Friday respectively. This could increase bets on the Euro amid expectations of a 2022 interest rate hike from the European Central Bank.