The pound is trading at a 2021 high against the euro and around monthly highs against the dollar.
Soaring Covid cases and increased restrictions in Europe have given sterling the edge against the single currency. In addition, markets are widely anticipating another interest rate hike from the Bank of England in early February and potentially also in May.
In his year-end message, Prime Minister Boris Johnson said the UK is in an “incomparably better” position this new year compared to the start of 2021. Nonetheless, he has urged people to be cautious with New Year’s Eve celebrations as UK Covid cases reached another record high yesterday.
