The pound is weaker against the euro this morning as the new lockdown restrictions weigh on sterling. There are concerns over how the UK economy will cope in the first quarter of this year and any progress is heavily dependent on the success of the vaccine rollout.
Bank of England governor, Andrew Bailey is due to speak later today and could indicate whether officials will cut interest rates at their next monetary policy meeting. Previously, the Bank said it would wait for the Brexit outcome before taking any decisive action.
PMI data for the UK will be released later today, which will signify how the economy coped during December. The service sector is expected to stay in contraction territory but show a slight improvement from November.
