The pound is strong against the euro and the dollar this morning, reaching the cusp of 1.20 against the single currency earlier.
This strength is largely due to the Prime Minister confirming that there will be no further COVID-19 restrictions, despite Omicron cases rising, saying he hopes the country will “ride out” the wave. Today, there will be a cabinet meeting where Johnson will set out his case for choosing not to impose restrictions and he will face Prime Minister’s questions later.
Sterling is also being supported by the prospect of another interest rate hike from the Bank of England in February. There are also expectations that the Bank will end its bond-buying programme in March.
