The pound is still strong against the euro and the dollar this morning, benefitting from hopes that Covid related lockdowns are a thing of the past. Cases of Omicron are now falling according to the daily figures released by the government and hospital admissions are now levelling.
Despite these reports, there are some concerns that the number is decreasing due to the shortage of tests. The figures also do not include those who are re-infected with the virus, apart from in Wales.
As the threat of the pandemic is appearing the subside somewhat, the markets will now be looking to the Bank of England’s next decision on interest rates. The next monetary policy meeting will take place in early February.
On Friday, GDP figures for the UK will be released for November and is expected to have improved month-on-month.
