The pound is trading around the same levels against the euro this morning. Sterling gained some strength against the dollar yesterday but has since retreated.
The pound continues to be weighed down by rising Covid cases and supply chain problems, and markets will now be focusing on today’s US non-farms payroll report which could give sterling a boost.
Andrew Opie, director of Food and Sustainability at the British Retail Consortium, said that the supply chain situation is “getting more challenging” but that “it is not too late for the government to do something to make sure there isn’t a problem over Christmas”. If these problems are addressed, this could also give the pound fresh strength.
Other important data releases today include services PMI figures which are due to be released shortly and will reveal how the service sector is recovering from the pandemic. The reading is expected to fall from 59.6 to 55.5.
