Today’s news headlines:

‘Republican stimulus offer challenges Biden to split aid package’. President Biden must decide whether to chop his $1.9tn Covid-relief package into pieces, after a Republican counterproposal was announced. The GOP suggested a reduced package of $600bn, which does however still include part of Biden’s original plans for the funding of vaccines, testing and unemployment assistance. Whilst his aim was to achieve a bipartisan deal, Biden may have to settle for the Republicans new offer, whilst pushing through a partisan budget tool to achieve the rest of his original amount. (Bloomberg)

‘Johnson and Sunak draw up plans for post-Covid recovery’. The UK government is working on a pre-budget recovery plan to boost investment and skills as the UK emerges from the pandemic. The plan will be released the week of the 22^nd February and includes a roadmap on how to rebuild the economy. Chancellor of the Exchequer, Rishi Sunak, is expected to extend support for businesses and individuals until the economy can reopen, following the Prime Minister pledge to ‘make sure people don’t suffer’ through the current restrictions. (Financial Times)

Today's events, rates, and data 

• Sterling tested and failed at the 1.3750 interbank level against the Dollar this morning, the fourth time in the past week. The Bank of England is expected to release more guidance on negative interest-rates this week, which could produce some heightened volatility for the Pound. Meanwhile, silver spiked after retail traders overwhelmed demand for the precious metal following comments on Reddit that prices have been kept artificially low.

Today's events

China Caixin Manufacturing PMI: 51.5 vs 53.0 previously
German Retail Sales: -9.6% vs 1.1% previously
UK Final Manufacturing PMI: 9.30am
Canada Manufacturing PMI: 2.30pm
US ISM Manufacturing PMI: 3.00pm

Interbank rates

GBP/USD: 1.3740
GBP/EUR: 1.1335
EUR/USD: 1.2125
USD/CAD: 1.2775