The pound is still strong against both the euro and the dollar this morning, benefitting from reduced fears surrounding the Omicron variant and increasing expectations for a Bank of England interest rate hike next month.
Further changes to Covid measures were announced yesterday. This includes news that double vaccinated travellers to England will not need to take a pre-departure test or isolate whilst waiting for a day two test. This will come into effect from Friday.
The markets now look to a series of economic data releases today. PMI figures will be released for both the UK and the eurozone, and any surprises could impact currencies. Equally, all eyes will be on German inflation data, which is expected to ease slightly month-on-month.
The dollar has strengthened against the euro and other currencies this morning following the Federal Reserve’s meeting minutes yesterday. The minutes revealed that officials are ready to accelerate the tapering of monetary support, which has increased expectations for an interest rate hike in March.
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