The pound strengthened yesterday and is still strong this morning against both the euro and the dollar due to COVID-19 infections falling for the sixth day in a row. It’s thought this drop could be due to schools closing for summer, better weather and ongoing caution from the public, despite restrictions being lifted. Experts say that there is not yet enough data to prove that this will be an ongoing trend.
Senior cabinet ministers will discuss later today whether quarantine restrictions will be lifted for fully vaccinated travellers from the US and EU. Downing Street has, so far, declined to comment on whether the plans will be approved.
Later today, the Federal Reserve will hold a press conference following its latest meeting. The markets will be listening closely for any comments about tapering monetary policy and hiking interest rates. The dollar could be impacted as a result.
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