Today's news headlines: 

‘Boris Johnson rejects calls to resign after scathing Sue Gray report on lockdown parties’. Sue Gray’s report into ‘partygate’ was released yesterday, albeit a watered-down version. It contained scathing criticism of the leadership and judgement used in Number 10, and saw many MPs voicing their distaste for the Prime Minister’s actions. Theresa May was outspoken in her criticism while ministerial aide Angela Richardson quit. (Financial Times)

‘UK house prices have strongest start to year since 2005’. House prices continue to soar in the UK, with the Nationwide House Price Index rising 11.2% last month—the fastest rise in January for 17 years. More alarmingly, a 10.0% deposit on a house is now equivalent to over 50.0% of a person's gross income. Industry experts predict the market will normalise in 2022 if the Bank of England raises interest rates, denting demand. (Financial Times)

Today

US markets closed out the month in positive territory yesterday despite the worst January returns for the S&P 500 since 2009. Treasury yields have cooled in recent weeks, with the US ten-year trading at 1.79% this morning. It’s a busy day of data ahead, with the US ISM Manufacturing Purchasing Managers’ Index being the focus.

Events

Australian Retail Sales m/m (Dec): -4.4% (est. -1.9%)
German Retail Sales m/m (Dec): -5.5% (est. -1.3%)
German Unemployment Change: 8:55AM
Eurozone Unemployment Rate: 10:00AM
Canadian Gross Domestic Product m/m: 1:30PM
US ISM Manufacturing PMI: 3:00PM
US JOLTS Job Openings: 3:00PM
New Zealand Employment Change q/q: 9:45PM

Interbank rates:

GBP/USD – 1.3476
GBP/EUR – 1.1973
EUR/USD – 1.1256
USD/CAD – 1.2658

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.