Pound (£)

The Pound remains strong for the most part due to the impressive vaccine rollout across the UK as well as the market pricing out a potential interest rate cut by the Bank of England in the near future. However, Bank of England Governor Bailey has suggested that there are signs that the EU is planning to cut the UK off from its financial markets which has caused some Sterling volatility.

Euro (€)

Germany’s lockdown has been extended until 7th March with the number of daily cases still high which has kept the Euro from strengthening. ECB President Lagarde has said that inflation in the Eurozone is not moving towards its medium-term target. ECB member de Cos believes that the central bank is prepared to use all of its tools to help with this.

Dollar ($)

Yesterday, US core CPI disappointed the market with a reading of 0.0% compared to 0.2% that was forecast. This led to a risk-off approach which strengthened the Dollar slightly. US unemployment claims are due at 1:30pm which is likely to cause some short-term volatility.