Rolling coverage of the latest economic and financial news
- BoE’s Bailey criticises EU pressure on City
- Travel stocks rallying again today
- Sterling has hit $1.42 today, first time since April 2018
- Also at one-year high vs euro
- Analysts: reopening plan lifts pound
- Fed chair warns US economic recovery ‘uneven and far from complete
Although the pound has dipped back from its three-year high of $1.42, analysts suspect it could push higher this year.
Capital Economics have raised their forecast for sterling’s value at the end of 2021, from $1.40 to $1.45.
First, it could conceivably have encouraged more portfolio flows into the UK stock market given its sectoral composition – the UK has a high weighting of energy and financials, which have benefited most from the vaccine-induced rotation. And second, the UK’s vaccine rollout has been especially successful, improving the relative prospects for its economy.
The jump in the oil price has sent shares in BP (+5%) and Royal Dutch Shell (+3.5%) higher, to around the top of the FTSE 100 leaderboard.
The FTSE 100 is now up for the day, gaining 35 points or 0.5% in late trading to 6661, with the pound having slipped back.