The pound is still weaker against the dollar and the euro this morning as a potential export ban from the EU continues to weigh on sterling. Today, the European Commission and leaders will decide whether to go through with the ban on exports to the UK and other countries.
Earlier this week, Boris Johnson warned against possible “blockades” and in a joint statement yesterday, the UK and EU said they wanted to “create a win-win situation and expand vaccine supply for all”.
The unexpected decline in inflation, which fell to 0.4% in February from 0.7% in January, also contributed to sterling’s weakness yesterday. Today, car production figures and CBI Distributive Trades data, which measures the health of the retail sector, will be released.
Despite this, data released yesterday showed that UK business activity grew at its fastest rate since August 2020 in March.
