The pound has continued to strengthen against both the euro and the dollar this morning. Yesterday, positive inflation rate data gave sterling a boost and the rally has continued. Market optimism due to a Biden Presidency and the promise of more stimulus in the US has also strengthened sterling, as well as positivity surrounding the UK’s vaccine rollout.
Speaking yesterday, Bank of England governor, Andrew Bailey, said that he thinks we are going to “see a pronounced recovery in the economy as the vaccination program, as it is doing now, rolls out”.
Later today, the CBI Business Optimism Index and CBI Industrial Trends Orders, which will reveal how the manufacturing industries have performed in January.
