Finances take a hit

Today's news headlines: 

‘Pandemic hits UK household finances harder than EU peers’. The Resolution Foundation has found that UK households have been more likely to run up large amounts of debt when compared with others in the EU throughout the course of the pandemic. As people lose their jobs almost 60% recorded a notable drop in income, with those in the same situation in France only recording a 20% drop. Some are attributing these stats with France’s lower unemployment rate heading into the pandemic, meaning household finances were in better shape to deal with such large-scale restrictions when compared with the UK. (Financial Times)              

‘J&J to restart vaccine shipments to Europe after regulatory green light’. After issues surrounding blood clots and other adverse side effects, the EU’s health agency has approved the Johnson & Johnson vaccine for use which will see another 200m doses enter the bloc. This is another boost for the vaccination campaign as daily vaccination rates in Germany look to be on track to match those of the UK in the next few weeks and months, barring any supply issues and suitable levels of uptake. (Financial Times)

Today's events, rates, and data 

  • Markets have continued their moderate fall, with the S&P 500 and Dow Jones both down 0.68% and 0.75% at the close yesterday. The FTSE 100 also had a poor day falling 2.0%. Cable seems to have run out of steam, holding just below $1.3950 while EUR/USD has also consolidated above $1.20.

Today's events

Australia Retail Sales m/m: 1.4% vs -0.8% last month
UK CPI y/y: 0.7% vs 0.4% last month
MPC Member David Ramsden Speaks: 9:05am
BOE Governor Andrew Bailey Speaks: 11:30am
Canada CPI m/m: 1:30pm
BOC Monetary Policy Report: 3:00pm

Interbank rates

GBP/USD: 1.3938
GBP/EUR: 1.1590
EUR/USD: 1.2026
USD/CAD: 1.2594

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