The pound reached a 5-week high against the dollar yesterday and a 3-week high against the euro after positive jobs data, which shows that the number of payrolled employees in the UK has risen to pre-pandemic levels. It is still strong this morning after inflation data, which revealed that annual inflation rate in the UK jumped to 3.2% in August of 2021, the highest since March 2012 and the largest increase on record.
During an announcement yesterday, the Prime Minister revealed a ‘plan A’ and a ‘plan B’ for tackling coronavirus during the winter months. This involved the possibility of re-introducing home working if necessary and offering one dose of the Pfizer vaccine to all children aged 12 to 15 in the UK.
The dollar has weakened following US inflation, which rose minimally in August. This has created uncertainty surrounding the Federal Reserve’s plans for tapering monetary policy, which comes ahead of the Fed’s meeting next week.
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