The Pound has continued to perform well against both the Euro and the Dollar. However, this morning UK retail sales came out at -8.2% compared to -3.0% that was expected. This has put some downward pressure on the Pound against the Euro to start off the day.
Although the Eurozone has struggled with its vaccine rollout, there are signs of improvement. Germany reported 9,113 new cases indicating a downward trend. German manufacturing PMI data came out better than expected whilst services PMI came in below forecasts. Overall, the Euro has struggled to make gains against the Pound and Dollar.
Yesterday, US unemployment claims disappointed the market at 861K compared to 775K that was forecast. However, the market chose to focus on the anticipated fiscal stimulus package which is weakening the Dollar due to a lack of demand for its safe-haven status.