The Pound remains strong after yesterday’s 3-month high consumer price index inflation release whilst the UK’s vaccine rollout continues to impress the market. UK retail sales data will be released tomorrow morning which is likely to cause some short-term volatility.
The Euro remains under pressure as the vaccine rollout in the Eurozone continues to lag behind the UK and US vaccination programs. Italian PM Draghi has called for Italy to pull together through the pandemic whilst suggesting that more European integration will be implemented during his term.
US retail sales data beat the market’s expectations at 5.3% compared to 1.1% that was forecast. The FOMC meeting minutes released last night suggested that the Federal Reserve will take an accommodative money policy stance. Overall, the market remains optimistic that the US economy can recover quickly provided the $1.9tn fiscal package is introduced as expected.