Balance of Payments

The UK's current account deficit widened substantially in the final quarter of 2020 as the demand for goods imports increased and earnings on investments abroad were hit by the covid-19 crisis, confirming a fundamental achilles heal of Pound Sterling valuation remains intact.

The pound to euro exchange rate’s trajectory will ultimately rest with whether or not the UK can continue convincing investors to keep plugging the hole in the UK’s bank account with the world.