The pound is stronger against the euro this morning. Sterling is trading around the same levels as yesterday afternoon against the dollar.
Leaders from around the world began to arrive in Cornwall yesterday ahead of the G7 summit. Prime Minister Boris Johnson has described the UK’s relationship with the US as “indestructible” after he met President Biden for the first time.
Nonetheless, Biden has expressed his “deep concern” about the UK-EU tensions over the Northern Ireland protocol. This political tension continues to hang over sterling and any decisions made at the G7 summit will be watched closely by markets.
Concerns over the Delta variant are also weighing on the pound. Health secretary Matt Hancock has revealed that this variant now makes up 91% of new coronavirus cases seen in the UK.
The opening of non-essential shops and outdoor dining in April saw the UK’s GDP grow by the fastest rate since last July.
