The Pound has performed well against the Euro as the number of daily coronavirus-related deaths increased by 82 – the first time since October that this figure has been below 100. Bank of England Governor Bailey is due to speak at 10am which may cause some short-term volatility.
The Euro remains under pressure after German industrial production data came out worse than expected this morning at -2.5% compared to -1.4% that was forecast. In addition, Italian retail sales disappointed the market on Friday at -3.0%.
On Friday, the US unemployment rate surprised the market at 6.2% compared to 6.3% that was anticipated. In addition, US non-farm payrolls exceeded the market’s expectations at 379K. The US Senate has passed President Biden’s $1.9tn fiscal stimulus package. Overall, this has kept US Treasury yields high which has strengthened the demand for the greenback.