UK GDP data for the month of January was released this morning and showed that the economy declined by -2.9%, although this was better than -4.9% that was forecast. Manufacturing and industrial production figures disappointed the market although the Pound remains supported by the UK’s vaccine rollout.
German final consumer price index inflation for February came out as expected at 1.3%. ECB member Villeroy has said that the central bank will remain accommodative for as long as it takes for the market to recover from the pandemic. Overall, the Euro remains largely unchanged.
Yesterday, the Dollar continued to weaken against both the Pound and the Euro. However, this morning the greenback has recovered some of its recent losses as US Treasury bond yields have increased once again which has generated more demand for the Dollar.