Sterling strengthened at the start of the week and reaches Tuesday roughly 0.5% ahead of this time last week against most major currencies.
The most obvious reason remains the comments from the Bank of England governor last week on worries over inflation, where the Monetary Policy Committee is neatly divided over whether to raise interest rates early to combat the risk of inflation.
Britain now has more people in paid employment than in February 2020, before the pandemic struck, adding 240,000 to the payroll in August. Moreover, there are over one million vacancies.
The positive news on jobs may not extend to the travel industry when the furlough scheme ends, however, at the end of this month. With real worries for small firms when the scheme ends, travel industry organisation ABTA has urged the government to abandon PCR tests for travellers and reduce the traffic light system to controlling just a few red light destinations. The next travel review is expected on 1 October.
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