The Pound has lost some of its strength after concerns turned to next week’s Budget. It is expected that Chancellor Sunak will increase corporation tax in order to recoup the funds that were spent during the pandemic.
German consumer climate data beat the market’s expectations with a release of -12.9 compared to -14.0 that was forecast which has given the Euro some support. However, Germany’s daily virus count has increased above the 10,000 mark again which is holding back any significant Euro gains.
FOMC member Clarida has said that the Federal Reserve will not be pushing interest rates up until its 2% inflation target has been reached and the labour market is at full capacity which has kept the Dollar weak. US preliminary GDP and unemployment claims figures are due at 1:30pm which may cause some short-term volatility.