Sterling strengthened following the Bank of England’s latest monetary policy meeting last week, when interest rates were raised to 0.25%. The pound is trading around the same levels against the euro this morning but has weakened slightly against the dollar.
This week, sterling is likely to continue to react to news surrounding the COVID-19 Omicron variant and what rising cases could mean for the UK economy. Although no new restrictions have been brought in for socialising, pubs and restaurants have said that business has been impacted by personal decisions to stay at home.
Final GDP figures for the UK and consumer confidence data will be released this week.
