The first week of January saw sterling trading at its strongest against the euro since February 2020.
As interest rates are being nudged up, with expectations of a further rise in the UK the pound is trading at €1.20.
The Bank of England is nudging at the interest rate in response to the growing spectre of inflation.
Although the bank's own experts have forecast that inflation will not run away, the jury is still out on how the rate of inflation will turn, given the energy cost hikes expected by spring of this year.
