Today's news headlines: 

‘Biden bows to demand to limit eligibility for stimulus cheques’. The US President and moderate Democratic members of the Senate have reached a compromise on the $1.9tn fiscal relief package that would limit eligibility for $1,400 stimulus cheques. The change means that the threshold at which the cheques are phased out will be lowered, meaning more targeted support for those in need. House Democrats have mixed responses to the amendment, but the consensus is that both chambers of Congress will pass the relief package before it can be sent to the White House for Biden’s signature. (Financial Times)

‘Tensions between EU and UK inflamed over Northern Ireland’. Tensions between the UK and EU are on the rise once again. Brussels has warned Britain that it would break international law by acting alone on easing Brexit impacts for Northern Irish businesses. Both sides have previously been accused of acting in bad faith by taking unilateral measures, most recently being when the EU signalled it would trigger a clause in the Northern Ireland agreement to secure Covid-19 vaccines. The UK wants to extend the grace period before health checks are required for goods shipments from Britain to Northern Ireland, but those on the EU side say that this undermines Britain’s commitment to the proper implementation of the Brexit deal. (Financial Times)

Today's events, rates, and data 

• Another surge in bond yields caused stocks and equity futures to fall overnight. There are concerns that current valuations are unsustainable if inflation and borrowing costs both rise quicker than expected. In currency specific news, the Pound, Euro and US Dollar traded little changed.

Today's events

UK Construction PMI: 9.30am
Eurozone Retail Sales: 10.00am
Eurozone Unemployment Rate: 10.00am
Fed Chair Powell Speaks: 5.05pm

Interbank rates

GBPUSD: 1.3955
GBPEUR: 1.1575
EURUSD: 1.2055
USDCAD: 1.2645