Today's news headlines: 

‘UK and EU begin diverging on financial regulation after Brexit’. After the recent shifts in trading volume from London to Brussels in the wake of Brexit, the UK have taken a firmer stance on financial regulation. The UK’s view is to place more responsibility with independent regulators such as the FCA and the exchanges themselves to create more self-governing marketplaces with the hope that this will attract greater market flow. This contrasts with the EU who take the position of top-down rule setting, believing markets are unable to operate independently. The UK will hope that equivalence is possible even with these contrasting points of view. (Financial Times)

‘EU leaders clash over vaccine distribution in tense summit’. As the vaccine rollout in Europe continues to puff smoke, many poorer eastern members of the bloc vented their frustration in the EU summit yesterday. Some countries feel left behind in the rollout of the vaccine in the bloc after a request for more doses from Austrian leader Sebastian Kurz was denied by the EU. The current state of the vaccine programme in the EU does not spell good news, as cases are on the rise and countries such as France fall into new lockdowns. (Financial Times)

Today's events, rates, and data 

• The S&P 500 finished 0.52% higher yesterday as US President Joe Biden increased his administration’s vaccination goal to 200 million in his first 100 days as President. Sterling has gained against the Euro to the €1.1660 level, while Cable has held at $1.3750 after a week of decline.

Today's events

UK Retail Sales m/m: 2.1% vs -8.2% last month
German ifo Business Climate: 9:00am
US Core PCE Price Index m/m: 12:30pm
US Revised UoM Consumer Sentiment: 2:00pm
US Revised UoM Inflation Expectations: 2:00pm
EU Economic Summit Day Two: All Day

Interbank rates

GBP/USD: 1.3747
GBP/EUR: 1.1668
EUR/USD: 1.1782
USD/CAD: 1.2580

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.