GBP

Sterling’s run of strength continued as inflation data beat expectations yesterday further pushing the already surging currency supported by very positive numbers regarding the vaccine rollout. Inflation figures being higher than expected also again reduces the likelihood of negative interest rates. Sterling is currently on a run of 6 straight week of gains against both Euro and USD.

Rumours continue to circulate that Prime Minister Boris Johnson will announce his roadmap out of lockdown in his next address to the nation on the 22nd February although warnings coming the health office indicate they will only be comfortable lifting restrictions when the daily infection rate drops below 1000 per day.

USD

The US Dollar continued its recovery against most of its G10 rivals, especially the Euro so far this week as rising treasury yields and fresh signs of US economy strength boosted the currency. Both recent manufacturing and retail sales data beat expectations suggesting the early year stimulus package may be starting to work, with more money also on the way for the American economy, this could mean further Dollar positivity.

Key announcements

12:30 ECB Monetary policy meeting accounts