Holding steady

Today's news headlines: 

‘Johnson seeks to end UK-Brussels stand-off over AstraZeneca vaccine’. As a third wave of the pandemic makes its way through Europe, the Prime Minister has issued warnings that the UK is not immune to another rise in case numbers. The EU has been battling with the UK over coronavirus vaccine stockpiles located at a factory in the Netherlands. The company, Halix, have claimed these doses are contracted to the UK while the EU is expecting a delivery after the drugs regulator approved them safe for use. It is hoped the matter will be resolved by the next EU Summit this Friday. (Financial Times)

‘UK labour market steadies as vaccine rollout boosts recovery hopes’. The UK looks on track to meet checkpoints laid out in the Prime Ministers roadmap out of the pandemic. Unemployment data released this morning indicates furlough measures appear to be working, boosting hopes of an economic recovery later this year. Total unemployment fell to 5.0% from 5.1% previously, while the number of people on company payrolls was also boosted, indicating some health in the job market. However, there is a long way to go as economic activity remains heavily depressed compared to a year ago. (Financial Times)

Today's events, rates, and data 

  • US stocks climbed higher yesterday as the S&P 500 gained 0.7% and the Nasdaq rallied 1.2%. The US 10-year Treasury bond yield has fallen to 1.66% this morning after reaching highs of 1.75% last week. The Pound is up marginally against the Euro while Cable remains little changed.

Today's events

UK Unemployment Rate: 5.0% vs 5.1% previously.
MPC Member Jon Cunliffe Speaks: 9:55am
BOE Governor Andrew Bailey Speaks: 11:50am
Fed Chairman Jerome Powell Testifies: 2:00pm
FOMC Member Lael Brainard Speaks: 5:25pm and 7:45pm
FOMC Member John Williams Speaks: 6:45pm

Interbank rates

GBP/USD: 1.3848
GBP/EUR: 1.1612
EUR/USD: 1.1930
USD/CAD: 1.2537

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