This morning, UK consumer price index inflation for the month of December beat market expectations at 0.6% compared to 0.5% that was forecast. This has given the Pound a boost against both the Euro and Dollar.

Yesterday, both Eurozone and German ZEW sentiment data came out better than expected which gave the Euro some strength initially. Italy PM Conte has won a confidence vote by the Senate to stay in power, but opposition parties are planning to ask President Mattarella to force Conte to resign.

As expected, US Treasury Secretary nominee Yellen suggested that approving the proposed $1.9tn fiscal stimulus package is the right thing to do as the benefits outweigh the costs. This led to the Dollar weakening across the board. President-elect Biden’s inauguration ceremony will take place later in the afternoon.