The pound has soared against the euro, owing to Boris Johnson’s confirmation of Freedom Day.
The pound has gotten a boost from BORIS Johnson’s statement that COVID-19 restrictions will be lifted, while the euro is struggling due to concerns over the spread of the Delta variant across the continent, according to a financial analyst.
Jeremy Thomson-Cook, Chief Economist at international business payments provider Equals Money, was speaking after the pound sterling reached €1.17 on Monday, its highest level this month. The pound was also worth just about $1.39, a cent more than it was in the last days of last week.
The pound has made a strong start to the week.
“The pound has started the week on the front foot, hitting its highest levels in July so far, attempting new highs against both the euro and the dollar for the first time since April,” Mr Cook said.
“The pound appears to be benefiting from the resumption of economic activity, with the UK slated to reopen on July 19.”
“Covid figures and an increase in the hospitalisation rate, as well as any changes in course by the government or a new assessment by the Bank of England, will of course be a downside risk for the pound,” he added.
“Moves on the euro were modest yesterday in the absence of any real data,” Mr Cook added.
“News of the spread of the Delta version throughout Europe will continue to be a prominent subject for the euro in the medium term, with France, the Netherlands, and portions of Spain all announcing further limitations to contain the contagion.”
The pound was worth £1.3861 at 10 a.m. today, compared to 1.3885 USD at the previous close.
The euro was worth 0.8549 pounds at the close, down from 0.8540 pounds the previous day.
Mr Johnson acknowledged the risks involved in his decision to loosen limitations during a press conference at Number 10 yesterday.
“It is vitally critical that we move with prudence now, and I cannot emphasize this strongly enough: this pandemic is not over,” he warned.
“Coronavirus, the disease, continues to pose a threat to you and your family.
“We can’t just go back to life as it was before Covid on Monday, July 19th.
“We’re going to stick to our guns.” Brinkwire Summary News