Today's news headlines: 

‘Sunak plans Covid support for UK economy lasting into summer’. The UK’s Chancellor, Rishi Sunak, has promised billions more in financial support to avoid the permanent closure of businesses before the economy is allowed to reopen this summer. Sunak will provide details during next week’s budget but is widely expected to extend existing aid programmes that are due to end in March to avoid a cliff-edge situation for businesses. Sunak faces the unenviable task of putting the UK economy on the path to recovery from the biggest slump in 300 years, along with the largest budget deficit in peacetime. (Bloomberg)

‘China urges Biden to lift sanctions and stop meddling'. US-China relations took a sour turn yesterday as China’s foreign minister spoke out against Washington in a joint forum in Beijing. Wang Yi called on the US to lift sanctions and stop interfering in the country’s internal affairs, after President Biden spoke out on alleged human rights abuses in the Xinjiang and Tibet regions. Ned Price, US state department spokesman, returned fire in comments criticizing Beijing’s tendency to avert blame for its predatory economic practices and lack of transparency. The Biden administration has already made clear that it harbours no intention of rolling back tariffs in the near term. (Financial Times)

Today's events, rates, and data 

• Markets are continuing to position for the acceleration of inflation, with commodities rising to their highest in almost eight years. This morning, both European and US equity futures have ticked higher, following their Asian peers. In currencies, the Dollar index moved lower taking Sterling to the cusp of 1.41 against the Greenback.

Today's events

UK Claimant Count Change: -20.0K vs -20.4K previously
UK Average Earnings Index: 4.7% vs 3.7% previously
UK Unemployment Rate: 5.1% vs 5.0% previously
Fed Chair Powell Testifies: 3.00pm
US CB Consumer Confidence: 3.00pm
BOC Gov Macklem Speaks: 5.30pm

Interbank rates

GBP/USD: 1.4085
GBP/EUR: 1.1580
EUR/USD: 1.2165
USD/CAD: 1.2600