Today's news headlines:
‘Boris Johnson faces Tory mutiny as mood turns “sulphurous”’. Pressure is growing on UK Prime Minister Boris Johnson, who’s facing backlash from the Conservative party over his attendance at a number of parties that took place during lockdown. Many believe a tipping point has been reached in his tenure, with votes of no confidence reportedly being prepared by a number of Tory MPs. It’s believed that the Cabinet Office is cooperating with the Metropolitan Police to determine if any rules were broken and is expected to pursue an investigation if needed. (Financial Times)
‘High inflation is “severe threat” to US jobs recovery, Jay Powell warns’. Federal Reserve Chairman Jerome Powell laid out some cautionary words in his testimony to the Senate Banking Committee yesterday, citing rising inflation as a curb to consistent economic expansion, which could create a drag on longer-term labour market participation. Powell also emphasised the Fed’s willingness to raise interest rates more aggressively if needed while also signalling to markets the possibility of a balance sheet reduction later this year. (Financial Times)
Asian markets closed higher overnight following on from a bounce-back in US stocks which saw the S&P 500 gain 0.92%. Major pairs have maintained stability ahead of the US Consumer Price Index print later today, which is expected to hit a 40 year high.
China Consumer Price Index y/y (Dec): 1.5% (est. 1.7%)
Euro Area Industrial Production m/m: 10:00AM
US Consumer Price Index and Core CPI m/m: 1:30PM
Monetary Policy Committee member Jon Cunliffe speaks: 2:15PM
Federal Open Market Committee member Lael Brainard speaks: 3:00PM
US Crude Oil Inventories: 3:30PM
US Beige Book: 7:00PM
GBP/USD – 1.3637
GBP/EUR – 1.2000
EUR/USD – 1.1364
USD/CAD – 1.2564
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