Today's news headlines: 

‘IMF urges Eurozone to boost spending to fuel economic recovery’. As the Eurozone tries to pull its way out of the pandemic there is talk that major economies in the bloc could begin to taper their fiscal stimulus later this year. The IMF has since warned the lasting damage this could have on jobs and GDP growth as countries attempt to regain some sort of normality, with the Eurozone GDP forecast since being cut to 4.5% for 2021. However, with the recent arrival of Mario Draghi in Italy, spending looks set to increase with a €40bn stimulus package that could see the countries national debt rise to 10% of GDP—the highest it has been for 30 years. (Financial Times)

‘EU bets big on BioNTech/Pfizer jab as Danes stop giving AstraZeneca’. As Denmark became the first country to halt use of the AstraZeneca vaccine after reports of severe side-effects, the EU have begun ramping up production of the Pfizer jab in the event that any other countries decide to follow suit. The bloc has since negotiated more supply of the Pfizer vaccine, which will see 250 million doses set to arrive in the second quarter of the year. The EU are also brokering a deal which could see upwards of 1.8bn doses of the vaccine arrive on the continent in 2022-23. (Financial Times)

Today's events, rates, and data 

• Markets were boosted yesterday after strong earnings from both Goldman Sachs and JP Morgan. The FTSE 100 gained 0.71% while the FTSE 250 also performed well, ending the day up 0.39%. Currencies are mostly flat this morning with Cable trading close to the $1.38 level, while EUR/USD continues to strengthen, approaching the $1.20 level.

Today's events

Australia Unemployment Rate: 5.6% vs 5.8% last month
US Retail and Core Retail Sales m/m: 1:30pm
US Philly Fed Manufacturing Index: 1:30pm
US Unemployment Claims: 1:30pm
Switzerland Gov Board Member Andrea Maechler Speaks: 3:00pm
FOMC Member Raphael Bostic Speaks: 4:30pm
FOMC Member Mary Daly Speaks: 7:00pm

Interbank rates

GBP/USD: 1.3778
GBP/EUR: 1.1506
EUR/USD: 1.1973
USD/CAD: 1.2521

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