The pound has reached new highs against both the euro and the dollar this morning as markets are optimistic about the recovery of the UK economy. The government has reached its target of offering a vaccine to the 15 million most vulnerable people in the UK. The next phase of the vaccine programme will now begin, with over-65s and younger at-risk groups starting to receive offers.
Sterling was relatively unaffected by last week’s data releases showing that the UK’s GDP fell by 9.9% last year, the biggest slump on record. Chancellor Rishi Sunak reassured markets that other countries were seeing similar data.
Infection rates are declining and the latest R number, which refers to how many people someone could spread the virus to, is now the lowest it has been since July. Prime Minister Boris Johnson has said that he aims for a “cautious” easing of lockdown from the 8 March and hopes to set out his plan on 22 February.
Later this week, data will be released for the UK’s inflation rate, retail price inflation and retail sales.
