Sterling continues to be well supported by the UK’s vaccine rollout, falling infection rates and hopes for economic recovery. The government says it has vaccinated 15 million people, which means that just over one in four adults have had their first dose of vaccine so far.
The UK’s inflation rate for January was released this morning, coming in higher than expected. Furniture and food prices rose last month, whilst prices for clothing and shoes declined.
The dollar has strengthened today due to market optimism over Biden’s $1.9 trillion stimulus package. The Federal Reserve will release the minutes from their latest monetary policy meeting today, in which officials are expected to brush aside inflationary pressures.
Despite the EU’s slow vaccine rollout which has weighed on the euro, data released yesterday shows that analysts are optimistic about how the German economy will fare over the next 6 months.
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