Sterling is weaker against both the euro and dollar this morning, but is still at fairly strong levels. This comes as Prime Minister Boris Johnson suggested lockdown may go on longer than spring. However, markets have responded well to President Joe Biden’s assertive approach to his first days in office, and the pound closed at a 32-month high against the greenback yesterday. Optimism for the UK’s vaccine programme and the passing of the US stimulus package continues.
Gfk consumer confidence has worsened by 2 points to -28 in January. Despite the rapid acceleration of vaccinations across the country, the effects are yet to be seen, and cases and deaths remain high.
Retail sales saw the largest year-on-year fall since records began, falling by 1.9% last year compared to 2019. Next week we will see unemployment rate data released for the UK which is expected to increase.
