Today’s news headlines:

‘Watchdog criticises government over awarding of £17bn Covid contracts’. The National Audit Office has reviewed contracts entered by the government during the coronavirus pandemic and found numerous cases of cronyism and in certain cases outright negligence. The need for speedy action has resulted in missing financial checks, conflict of interest reports and lack of background checks for some of the governments suppliers. (Financial Times)

‘Donald Trump’s Fed board nominee Judy Shelton fails crucial Senate vote’. Donald Trump’s unusual candidate nominee for the Fed, Judy Shelton, has failed to gain Senate approval. Miss Shelton is a controversial figure among both parties because of her iconoclast views, like a return to the gold standard. This has proved to be too much for some Republicans, who voted against her or abstained, which left the final tally at 50-47.  (Financial Times)

Today's events, rates, and data 

• The Dollar Index continues to slide towards the bottom of a two-and-half year trading range, while Sterling makes tiny advances to a two-month high. Positive vaccine news continues to drive a risk on trend in markets. With little meaningful data out today, the focus remains on Trump’s last moves before his time elapses.

Today's events

UK CPI y/y: 0.7% vs 0.5% last month
UK Core CPI y/y: 1.5% vs 1.3% last month
UK HPI y/y: 9:30am
EU CPI y/y: 10:00am
EU Core CPI y/y: 10:00am
UK MPC Member Haldane Speaks: 10:30am
CA CPI m/m: 1:30pm
US Building Permits: 1:30pm
US FOMC Member Williams Speaks: 5:15pm

Interbank rates:

GBP/USD: 1.3285
GBP/EUR: 1.1175
EUR/USD: 1.1885
USD/CAD: 1.3070

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