Yesterday, UK construction PMI data beat the market’s expectation which gave the Pound a boost against the Euro. The MHRA has also signalled a willingness to fast-track vaccines designed to target new coronavirus variants which was also seen as a positive for the Pound.
German factory orders came out at 1.4% compared to 0.4% that was forecast. However, the decision by Italy to block a shipment of 250,000 doses of the AstraZeneca vaccine due to be sent to Australia led to a weaker Euro as this triggered concerns for the slow Eurozone vaccination rollout.
Federal Reserve Chairman Powell said that rising US Treasury bond yields had caught his attention, which gave the Dollar strength overnight. At 1:30pm, US non-farm payrolls, average earnings and the unemployment rate will all be released which is likely to create some short-term volatility.