Sterling strengthened by around 1% across the course of yesterday against EUR. It remained broadly stable against USD but did briefly hit a new two-month high.
This was partly due to the vaccine news and partly down to hints from the UK Environment Secretary of a potential deal on fisheries with the EU.
This morning we have already heard that unemployment in the three months to September was 4.8%. This is in line with expectations, but above the 4.5% in the previous period. There were 247,000 fewer people in work.
However, it is not so far above the 3.9% rate of this time last year, before Covid. The Chancellor’s furlough scheme was due to end in October, meaning that many staff were laid off. However, it has now been extended to the end of March 2021.
On Thursday we have GDP for Q3 along with a mass of other industrial and economic data, as well as a speech by Bank of England governor Andrew Bailey, that could indicate a direction in monetary policy.
