After falling earlier in the week, the pound is stronger this morning against both the euro and the dollar.
Sterling’s new-found strength comes from Chancellor Rishi Sunak announcing yesterday that struggling businesses in the hospitality sector can now take advantage of a new £1bn grant to help with rising Omicron-related cancellations. This move has mostly been welcomed, but some businesses warn it isn’t enough.
Prime Minister Boris Johnson has confirmed that there will not be any restrictions introduced in England before Christmas but said he “can’t rule out any further measures after”.
Any announcements to confirm post-Christmas restrictions in England in the next few days could send sterling lower, so if you’d like to lock in today’s rate, call your trader on 020 8003 4915.
In Scotland, restrictions have already been announced, including capacity limits on venues and table service in restaurants from Boxing Day, with Wales due to follow suit today.
In other news, GDP for the UK grew by 6.8% year-on-year in the third quarter, higher than expected but causing little change for sterling. Gas prices across the continent are at record levels with the day-ahead price rising by 20% in a day in the UK.
As we enter yet another year with coronavirus being the centre of attention, how sterling will fare in the new year remains uncertain. The pound is still around 6 or 7% stronger than this time last year, so why not lock it in now for the year ahead with a forward contract?
