The pound is still at strong levels against the euro and the dollar this morning, rising to multi-month highs against both. Sterling is the top performing G-10 currency of 2021 due to reduced expectations of a negative rate cut and an efficient vaccine programme which has fuelled hopes of a swift economic recovery in the UK.
Brexit concerns, which weighed on the pound towards the end of last year, have now faded into the background, allowing sterling to strengthen.
In his testimony to MPs of the Treasury Committee yesterday, Bank of England Governor, Andrew Bailey, said that the EU seems to want to take business out of the City of through forcing firms to relocate euro clearing business away from the UK. He labelled this a “very serious escalation”.
