Read our currency forecasts and market reports for details of what could affect the Pound, Euro, US Dollar, Australian Dollar and many of the other major currencies.
Uncertainty grows over whether 'freedom day' will proceed which has caused sterling rates to fluctuate.
By Oliver Godwin
Sterling has performed well against most major currencies this week, up approx. 1.5% against the euro and 1% against the US dollar at the time of writing.
The pound has hit a seven-week low against the euro and an eight-week low against the USD in recent days.
The pound started the year around 1.10 against the euro, which highlights how well the pound has performed the last few months.
Sterling had shown great strength at the start of the final week of February but ended the week just below its new 12-month high.
This week, sterling has risen to an 8-month high against the euro as investors cite the UK’s vaccine rollout as the primary driver in the pound’s strength.
The pound has failed to make gains past 1.12 against the euro, as the UK is plunged into its third national lockdown.
Despite a trade deal between the EU and UK being made, sterling has failed to make any substantial gains against the euro.
The pound has stayed firm against the USD and EUR at the start of this week as a more optimistic market view on the prospect of a post-Brext trade deal emerges.
Due to an increase in the likelihood of a no-deal Brexit, pound sterling suffered an approximate 4.5% loss against the euro.
What happened in 2019 and what are the upcoming events that could impact the pound, euro and US dollar?
Sterling supported by increased likelihood of a Conservative majority with bookmaker Betfair odds sitting at 65.8%.
Boris Johnson changes his tone as he seeks a new Brexit deal; German Government could inject €50 into their economy; US Fed likely to cut interest rates.
Opposition party lawmakers look set to block Boris Johnson from suspending parliament and leave the EU without a deal.
EUR slides as Italian League Party withdraws from government coalition causing Italian political instability.