The Pound has recovered some of its losses as the focus shifted back to the UK’s efficient vaccine rollout and the government’s roadmap to easing lockdown restrictions. In addition, it is expected that Chancellor Sunak will announce a further £5bn in grants to help the high street recover from the pandemic.
The Euro remains under pressure against both the Pound and the Dollar. ECB member Visco has suggested that the central bank will wait for a substantial recovery in the Eurozone economy before halting support measures.
The US House of Representatives has approved President Biden’s $1.9tn fiscal stimulus package. Biden has now called on the Senate to also approve the package, with Senate leader Schumer indicating that it should be approved by 14th March. This has kept US Treasury yields high which in turn has given the Dollar strength for the time being.