The pound is still at strong levels against the euro and the dollar this morning. The progress of the UK’s vaccination programme and hopes for a swift economic recovery are still supporting sterling. Almost 28 million people in the UK have now had their first dose of the vaccine.
Despite this, the Bank of England stuck to its cautious approach at the monetary policy meeting last week, largely ignoring the progress made by vaccines and improving economic data, which disappointed the markets.
This week is a busy week for economic data in the UK. Employment figures for January will be released tomorrow, as well as CBI Industrial Trends Orders, which measures changes in the levels of factory orders. Inflation rate figures will be released on Wednesday, followed by retail sales on Friday.
