Sterling strengthened overnight to its highest level for two weeks against the euro, but failed to break out beyond €1.17, continuing the pattern of the past three months.
There was also a recovery against the US dollar to a near-two-week high, but GBP/USD is still almost 2% weaker than this time last month.
Driving the recovery was the news that most domestic Covid-19 restrictions will be ended in the UK on 19 July, now less than two weeks away. The Prime Minister said there would be a move away from legal restrictions and towards people making “their own informed decisions about how to manage the virus”. Johnson added that the virus is “far from over”, with new cases currently at around 25,000 per day.
People will no longer have to wear masks, socially distance or work from home.
The FTSE 250 reached a record high of over 23,000 points, taking its cue from Wall Street which hit a record on Friday, and oil prices reached their highest since 2018.
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