The pound has weakened against both the euro and the dollar this morning. The prompt appears to be due to issues unrelated to the vaccine rollout or Brexit deal, which had boosted sterling in recent weeks, but larger scale changes in global market sentiment around risk aversion and bond yields.
In the UK, more people were on furlough at the end of January than at the end of December, as the cost of the scheme reaches £53.8bn.
Ahead of Wednesday’s spring Budget, UK businesses have expressed their need for further financial support. Chancellor Rishi Sunak is also under pressure to extend the furlough scheme as restrictions continue. He has said he will be “open and honest” with the British people, and the tone of the Budget could impact the pound.
