Today's news headlines: 

‘Rapid vaccine rollout promises faster economic revival and fewer tax rises’. This week, official UK budget forecasts are expected to show that the success of the vaccination rollout will produce a quicker economic recovery than expected, and partially relieve the nation from the heavy tax rises that were previously feared. Chancellor of the Exchequer, Rishi Sunak, remains concerned about the strain on public finances. However, a source close to the budget process suggested the outlook has improved significantly, with the vaccination process having made a 'material change in the last few months’. (Financial Times)

‘Biden putting tech, not troops, at centre of US-China strategy’. The Biden administration is focusing on technological development to rival China, during the current global shortage of microchips. The US will put semiconductors, artificial intelligence and next-gen networks at the heart of its strategy. According to officials, this is in line with broader plans to take an alliance-oriented, but still hostile, approach to China. (Bloomberg)

Today's events, rates, and data 

• Markets began this week on a positive note, as bonds extended their rebound after last week’s rapid sell-off. European and US futures look to follow gains in Asian equity markets. Overnight, energy prices ticked higher and most G-10 currencies gained against the US Dollar.

Today's events

Melbourne Institute Inflation: 0.1% vs. 0.2% prev.
Caixin China Manufacturing PMI: 50.9 vs. 51.5 prev.
Markit Eurozone Manufacturing PMI: 9:00am
UK Mortgage Approvals: 9:30am
Markit UK Manufacturing PMI: 9:30am
German CPI: 1:00pm
US ISM Manufacturing 3:00pm

Interbank rates

GBP/USD: 1.3960
GBP/EUR: 1.1565
EUR/USD: 1.2071
USD/CAD: 1.2700