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US stimulus package to be announced.

GBP - British pound

The UK continues to look outside the box for medication to combat COVID-19, despite already vaccinating over 2.5m people. The story broke that certain companies are looking to replace the COVID-19 jab with a pill. This would allow for far quicker distribution and allow those with fears of needles to obtain the vaccination. The UK is already on course to set records on distribution time, as Boris Johnson announces 24hr vaccine to be rolled out 'as soon as we can'. Once this is cemented, it is likely the pound will strengthen, as investors look to economies without the economic burden of COVID-19. For the moment, the pound remains steady, however with no rate cut on the horizon and the burden of a lockdown already priced into the British economy, there is little that can further knock the British currency.

Key Movers

It seems the key release in global markets on Thursday will be news of the US stimulus package. Biden is scheduled to announce the new relief package at 7pm GMT. He has been asked by Chuck Schumer, Democratic Senate Leader, to provide an additional $1.3tn in support. This will likely be given in the form of direct payments, however very likely to be short of the $2000 given in the first round of aid. A hearty stimulus plan may cause the Treasury yields to extend further, which would likely bolster the US dollar. The stimulus plan has been a key talking point for a while now and president elect Biden has continually claimed that supporting Americans would be number 1 priority while in office, so if the package is underwhelming, it may have a knock-on effect and weaken the US dollar.

Expected Ranges

GBP/USD: ▲ 1.3580-1.3735

GBP/EUR: ▲ 1.1140-1.1350

GBP/CAD: ▲ 1.7240-1.7430

GBP/AUD: ▲ 1.7470-1.7650