The pound finished last week in a strong position against the euro and the dollar. Despite news that Portugal was taken off of the UK’s green list and no countries were added, the pound reached a 2-month high against the single currency and is the top performing G10 currency over the past month.
However, this morning, sterling is weaker as markets digest the news that the lifting of restrictions on June 21 may not happen as planned. This comes after Health Secretary Matt Hancock said that the government is “absolutely open” to delaying the final stage of the roadmap, adding that June 21 was a “not before” date.
It was reported on Friday that the number of Covid-19 cases in the UK has risen by around three quarters in just a week. The markets will be looking closely for any further data that may influence the government’s decision on the June 21 reopening.
A series of data will be released for the UK this Friday, including industrial production and GDP figures. The UK’s GDP is expected to have grown by 1.6% in the three months to April this year.
