The pound is still strong against both the euro and the dollar this morning, following a resilient week.
It’s a quiet week for economic data until Friday, when GDP, industrial production and balance of trade figures will be released. Until then, the pound is likely to continue to react to overall market sentiment, Omicron news and Brexit news.
GDP is expected to have improved month-on-month in November, although the markets could be more interested in December’s reading, as this will show the impact of the spread of the Omicron variant on the economy. The sharp drop in December’s PMI data, revealed at the end of last week, could foreshadow December’s GDP results.
