The pound has fallen to two-week lows against the euro this morning and six-week lows against the dollar. This is due to a fall in the global markets, which has occurred due to fears that the global economic recovery from the pandemic could be slower than expected.
Concerns about a vaccine export ban from the EU are also weighing on sterling. The Prime Minister is trying to soothe tensions by speaking to EU leaders this week, who will decide whether to go ahead with the ban tomorrow.
Data released this morning shows that UK inflation rate unexpectedly dropped in February. Annual inflation rate eased to 0.4% in February of 2021 from 0.7% in January, below market forecasts of 0.8%. This was mainly due to a fall in prices for clothing and footwear.
