The pound rose to a near 1-year high yesterday against the euro and continues to strengthen against the dollar.
Sterling’s strength comes from the UK’s efficient vaccine programme and optimism over economic recovery. Markets will be listening closely to Prime Minister Boris Johnson’s announcement on Monday in which he is set to announce his plans for a “cautious” easing of lockdown.
The pound could continue to strengthen against the dollar if the UK economy reopens faster than the rest of the eurozone. However, there are reports that significant relaxing of restrictions may not happen until new cases fall below 1000 a day, potentially weakening sterling.
Retail sales fell a lot more than expected during January despite an increase in online shopping, with a decline of 8.2%. However, consumer confidence has increased.
