The pound is strong against the euro and the dollar this morning, trading above key levels. It’s moving in tandem with the stock markets which have risen due to optimism surrounding US stimulus measures, after President Biden was sworn in last week.
There will be a series of data releases this week and any negative results could impact the pound. At the end of last week, worse-than-expected retail sales caused the pound to weaken, due to the increased possibility that interest rates could be cut in the near future. Unemployment rate and average earnings figures will be released tomorrow.
The markets will continue to closely watch coronavirus infection rates and progress of the vaccine rollout. The UK government are now considering introducing harsher border controls for travellers.
