Sterling hit a fresh 8-month and 2¾-year high against EUR and USD respectively yesterday, but it was a choppy sort of day which ultimately saw the pound lose the earlier gains.
The early strength was a result of the weekend’s record-breaking vaccine rollout and Manufacturing PMI of 54.7, which exceeded expectations.
Today we have already seen Nationwide house price data showing a year-on-year rise of 6.4%, although prices fell 0.3% in January, against expectations and for the first time since the stamp duty holiday began last year.
The week ahead will be interesting, with the Bank of England Monetary Policy Committee pronouncing on interest rates on Thursday, but also the relative performances on vaccine rollout in main economies potentially moving the markets even further.
