The pound is still strong this morning against the euro and the dollar, trading around the significant 1.17 level against the euro. Support for the pound is still underpinned by the UK’s vaccine rollout, hopes for economic recovery and decisions from the Bank of England, who downplayed the possibility of negative interest rates in the near future.
All of these factors have contributed towards sterling’s best quarterly performance against the euro since 2015.
Despite this, the UK is expected to experience a vaccine shortage over the coming weeks due to issues with supply from India. In contrast, Europe’s vaccine supply is expected to experience a boost in April.
Manufacturing PMI will be released for the UK today, and is expected to show that the sector grew at a quicker pace in March than in February.
