Pound sterling has taken a beating again amidst new looming restriction fears. GBP has been one of the worst performing major currencies in the run up to Christmas with a partial “Circuit-Breaker” lockdown being suggested for the back end of December. This would result in an effective closure of the UK hospitality industry and a reintroduction of household mixing restrictions.
Last week the Bank of England provided a much-needed beacon of hope of the UK by taking the early decision to raise UK interest rates. GBP found some resulting comfort on Thursday in the form of a 0.5% rise against USD and EUR. Although markets expected a higher jump, the support was well welcomed.
Recent modelling research from independent body, Pantheon Macroeconomics have anticipated a 2% decline in UK GDP as a result of any short-term circuit-breaker lockdown and a drop of as much as 6% with full lockdown restrictions.
On that note we bid you all farewell until the 10th of January, when the daily updates will return.
On behalf of WorldFirst we would like thank you all for your support and custom over the past year.
Wishing you all happy holidays!
James Camp, Senior Relationship Manager.
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