Improved prospects

Today's news headlines: 

‘Fed poised to upgrade forecasts for US economic growth’. The speed of recovery in the US continues to build as President Biden’s stimulus package has been signed into law and now around two million people a day are receiving coronavirus vaccinations. Federal Reserve Chair Jerome Powell is still content with the countries current rate of growth, insisting that only when inflation and employment targets are met will an increase in interest rates be considered. Investors expect the Fed to present a more positive outlook on the economy today, suggesting an improved projection for this year from the 4.2% growth target set back in December. (Financial Times)

‘Brussels to propose Covid certificate to allow EU-wide travel’. The EU plan to create a Covid-19 certificate that they hope will facilitate smooth travel inside the bloc. They hope to help those economies that are heavily reliant on tourism, such as Greece. The scheme will allow those vaccinated or tested negative for the virus to travel around the union without the need to quarantine for two weeks. This could also present the opportunity to open travel corridors with those countries willing to implement a similar scheme and who use vaccines currently approved by EU regulators. (Financial Times)

Today's events, rates, and data 

  • Trading was mixed yesterday as most major indices finished the day lower, with the S&P 500 falling 0.2%. Sterling continues to strengthen against the Euro up above the €1.17 level in early trading. Meanwhile, US 10-year Treasury yields are at 1.63% ahead of the Federal Reserve meeting later today.

Today's events

Eurozone CPI and Core CPI y/y: 10:00am
Canada CPI m/m: 12:30pm
US Crude Oil Inventories: 2:30pm
FOMC Economic Projections: 6:00pm
FOMC Press Conference: 6:30pm
New Zealand GDP q/q: 9:45pm
Netherlands Parliamentary Election: All day

Interbank rates

GBP/USD: 1.3904
GBP/EUR: 1.1703
EUR/USD: 1.1896
USD/CAD: 1.2456

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