The Pound has continued to regain strength as 10 million people in the UK are now fully vaccinated, whilst both new cases and hospitalisations continue to stay low despite an easing of lockdown restrictions. In addition, the UK unemployment rate came out better than expected this morning at 4.9% compared to 5.0% that was forecast.
Euro (€) The market remains relatively optimistic that the Eurozone can recovery economically from the pandemic sooner than expected, especially with the EU’s recent announcement that it has secured 50 million Pfizer vaccine doses. The focus this week will be on Thursdays ECB interest rate announcement and press conference for any notable comments.
US Dollar ($) US Treasury bond yields have fallen which means that there is currently less demand for the Dollar. As a result, the market has taken a risk-on approach to find other investments. There is little demand for the Dollar’s safe-haven status as the market is upbeat about the US economy.