The pound reached a 23-month high against the euro yesterday and is still strong against both the euro and the dollar this morning.
Sterling is benefitting from improved market sentiment due to decreased concerns about the Omicron variant and the Prime Minister’s announcement, which revealed that no further lockdowns are expected. The prospect of another interest rate hike from the Bank of England in February is also supporting the pound.
UK PMI data will be released this morning, which will give an indication of how the economy performed in December. The figures are expected to fall slightly due to concerns about Omicron in the lead up to Christmas.
