Doing the double

Today’s news headlines:

‘US senators balk at impeaching Trump over Capitol siege’. Donald Trump could become the only US President in history to be impeached twice, despite opposition from senior lawmakers on both sides of the US Senate. Today, Democrats in the House of Representatives will motion for Vice-President Mike Pence to strip Trump of his powers following last week’s violent protests in Washington. If unsuccessful, they will once again vote to impeach Trump for urging protestors to storm the Capitol building, which resulted in the loss of five lives, in a blatant attack on US democracy. (Financial Times)

‘China consumer prices rise but worries persist over core inflation’. Price growth in China has been unnervingly low during recent months, despite the country rapidly recovering from the coronavirus pandemic, with industrial production taking charge. Inflation for the month of December inched into positive territory following a 0.5% fall the previous month, largely driven by food price increases. Analysts have predicted that China’s inflation will continue to rise with economic activity remaining strong, leading to potential for the PBOC to raise interest rates this year. (Financial Times)

Today's events, rates, and data 

  • The US Dollar has pulled away from multi-year lows since yesterday’s market open, as investors cool bets against the world’s largest economy. This is largely due to expectations for a quick economic recovery across the Atlantic if further stimulus measures are passed.

Today's events

China CPI: 0.2% vs -0.5% previously
MPC Member Tenreyro Speaks: 2.00pm
BOC Business Outlook Survey: 2.30pm
FOMC Member Bostic Speaks: 5.00pm

Interbank rates

GBP/USD: 1.3490
GBP/EUR: 1.1070
EUR/USD: 1.2185
USD/CAD: 1.2755