The pound is still strong against the euro and the dollar this morning due to falling COVID-19 cases in the UK. Sterling was nearing February 2020 levels against the euro yesterday.
If cases continue to fall, there will be high hopes for a strong economic recovery in the UK, especially as restrictions have already been lifted and life is slowly returning to ‘normal’. The markets will, therefore, be hoping for the Bank of England to respond by hiking interest rates ahead of other central banks.
This morning, car production and mortgage figures will be released for the UK.
