The pound strengthened towards the end of last week due to the Bank of England’s monetary policy meeting, when it was unexpectedly announced that the interest rates would be raised to 0.25%.
Despite this, sterling faces uncertainty this week, as it could react to ongoing talk of an increase in restrictions to combat the Omicron variant. The pound has already weakened slightly against the euro this morning.
Reports this morning reveal that civil servants have prepared three options of restriction measures for the government to consider. Deputy Prime Minister, Dominic Raab, said that the government is waiting for ‘real-time data’ before making any decisions.
The dollar is benefitting from its status as a ‘safe-haven’ currency this morning and is also strong due to ‘hawkish’ remarks from the Federal Reserve last week.
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