The pound has weakened slightly against the euro and the dollar over the course of this week, mostly due to a lack of positive drivers for sterling. In the absence of economic data releases or any news about the reopening of the UK economy, the pound lost some ground.
At the end of last week, the government published new guidance for eight Indian variant hotspots, suggesting that people meet outside where possible, keep 2 metres apart and avoid travelling in and out of the areas.
However, the guidance wasn’t officially announced, which caused confusion and accusations that the government were trying to enforce a “lockdown by stealth”. Public health directors have since issued a joint statement to say that there are no local lockdowns.
Sterling could continue to be underpinned by the UK’s successful vaccine programme. More than 70% of adults have received their first vaccine, while some 22 million have received their second dose.
