Good morning,

Sterling has seen itself enter a tug of war where by it has been the worst performing currency of 2021 so far. Continued negative sentiment, due to the third national lockdown brought in after the Christmas period, has seen a sell off with the exchange rates against the euro dropped by over 1.6% and over 1.2% against the US dollar over the last week.

Professor Chris Whitty was speaking with the BBC this morning, where the Chief Medical Officer warned the next few weeks could overwhelm the NHS. Pleading for all non-essential contact with others outside of a household to stop could see the economy start to falter. Coupled with the Health Secretary, Matt Hancock, saying the restrictions could tighten further, the UK could see the knock-on effect on the economy as seen in the summer of 2020.

On the other hand, however, the pound is still holding key resistance levels as vaccinations ramp up. Seven new ‘vaccinations hubs’ open their doors today with the target of vaccinating 15 million of the population by mid-February. As we have mentioned previously, it is seen as a race to who can get their economy back up and running after the pandemic and the UK has the potential to be first of the queue with the vaccination rollout.

Have a great day.

Jack Nicholls, Relationship Manager.

Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.

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