The pound is still trading at strong levels against the euro and the dollar this morning.
Disappointing PMI data pushed sterling slightly lower yesterday but the currency has since recovered. It was revealed that UK service sector growth fell to a 10-month low in December as the spread of the Omicron variant and the introduction of the government’s ‘plan B’ resulted in consumers being more cautious.
House prices have seen the sharpest rise since 2007, with the average UK home now costing a record £276,091. Nonetheless, it has been argued that this red-hot market could cool during 2022 as household budgets feel the pressure of higher costs of living and higher interest rates.
The energy industry has once again expressed concern around soaring household energy bills. While regulator Ofgem has announced it will set a new cap on consumer energy, it has been predicted that the average annual bill for a UK household could rise from £1,277 to more than £2,000 when the cap comes into effect in April.
