The pound is still trading around 13-month highs against the euro this morning after breaching key levels yesterday. The UK’s vaccine progress continues to support the pound, as well as hopes for economic recovery in the UK.
Sterling has weakened slightly against a strong dollar, however, mostly due to greenback strength.
Month-end and quarter-end volatility could feature today and early tomorrow, partly due to reduced liquidity.
GDP figures were released for the UK this morning, showing that the economy performed better than expected in the last quarter of 2020. It expanded 1.3% quarter-on-quarter in the last three months of 2020, higher than 1% in the preliminary estimate. Year-on-year, it fell 7.3%, less than preliminary estimates of a 7.8% fall.
