On Friday, UK manufacturing and services PMI data both exceeded expectations which gave the Pound a boost. In addition, CBI industrial order expectations also beat forecasts with a release of -24 compared to -35 which was anticipated. The focus today will be on Prime Minister Johnson’s four-part plan to lift lockdown restrictions due later this evening.
The Euro remains stagnant with Eurozone manufacturing PMI coming out better than expected but services PMI disappointing the market. EU Economic Affairs Minister Gentiloni has said that vaccinating 70% of the adult population in the EU is ambitious but achievable.
FOMC member Rosengren believes that the $1.9tn fiscal package that is being considered in the US is appropriate given the disruption the pandemic has caused to the labour market. The Dollar remains weak as the market remains upbeat about the global vaccine rollout.