The government figure shows over 4.3 million coronavirus cases have been confirmed in the UK and over 127,000 people have died.

Over 31.9 million people have had their 1st dose of the coronavirus vaccine and over 6 million people had their 2nd  dose.

Roll out of the coronavirus vaccine programme and some data releases have helped sterling perform strongly since the beginning of the year. The recent pullback in sterling may now indicate that this vaccination boost has now played out and that hard data will become increasingly more important in the future.

Compared to last month since schools have re-opened especially secondary school the cases of infection have slightly increased.

From the 12th April 2021 lockdown restrictions will ease further when high streets and businesses reopen. The public will be able to return to the pubs from today, however you will only be able to sit outside.

US Inflation Rise Fuels Fears of Goods Price Increase

In December, the annual rate of inflation increased by 50% to 0.6% compared to previous month as highstreets and businesses reopened in the UK after the end of the 2nd lockdown.  

This could mean the rate of inflation might increase as high streets and businesses reopened which means people will be willing to spend more money which will increase inflation and market rates could potentially increase. If there was to be a interest rate hike in the UK the pound could make considerable gains.  

European Plan and Vaccination Plan

The European Medicines Agency (EMA) has launched a review into a possible link between blood clots and the Johnson & Johnson vaccine.

There were four cases of serious blood clots one of them being deadly. Three of those cases were reported in the US after authorisation of the vaccine.

The European Union authorised the jab in March but the vaccine will not be delivered to EU countries until April 19.

Europe's recovery plan is the €672.5 billion Recovery and Resilience Facility to help get the economy back on track, made up of €312.5 billion in grants and €360 billion in loans.

To access the money, they will need to prepare a plan to show they will at least cover 37% of the funds to the transaction for a better economy and 20% to improve they economies. The money has to be spent on public investments to strengthen the countries economy.

Eurostat releasing the retail sales which is the measure the changes of sales of the euro zone retail sector. It displays the performance of the in the short term of the retail sector.

The percentage change reflects the rate of changes of these sales, these give an indication of the consumer spending. When there is a positive economic growth, it anticipates ‘bullish’ for the EUR, whereas a low reading is seen as negative or bearish for the EUR.

Rising US Inflation Could See Interest Rates Rise

Rising US Inflation Could See Interest Rates Rise

US inflation is heating up according to new data releasing on Thursday. one economist said, ‘pressure will now build on the Federal Reserve to raise interest rates.’

The Fed will likely want to see evidence on whether the pickup in inflation this year is indeed a temporary burst associated with the economy's full reopening versus a shift to a higher inflation environment post-COVID. That should keep the FOMC on the side lines in the coming months, even as inflation turns higher," says House.

The data comes as a Dallas Fed President Robert Kaplan said this week that inflation could rise "well in excess of 2.5%" over the summer, significantly above the central bank’s 2% target.

The IMF (International Monetary Fund) are discussing international exchange rates and developments which may have an impact on exchange rates and balance payments which may bring a new dimension to the market.

If you’re looking to buy or sell US Dollars in the near future there is going to be considerable volatility so make sure that you’re in contact with your account manager. Over the course of the last few weeks we have seen the GBP/USD rate fluctuate by 6 cents which means there is huge variations and the timing of the transfer can make a significant difference. 

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