The pound is still strong against the euro this morning, trading around the same levels, but slightly weaker against the dollar.
Against the euro, sterling is still benefitting from the Bank of England meeting last week, when officials said that a ‘modest tightening’ of policy would be needed and that the Bank is likely to raise interest rates in 2022, two years ahead of current expectations.
Sterling has been boosted in recent weeks by the reopening of the UK economy and falling COVID-19 cases. However, case numbers have started to rise again in recent days.
