A fairly quiet start to the week as market participants anticipate key danger events in the kind of the FOMC fulfilling and many large-cap earnings. Nonetheless, risk opinion is off to a firm start, which has come to the benefit of the Pound this morning, which hovers around the 1.37 handle. As I'd mentioned a week, the vaccine trade is currently in full swing for Sterling, which stands to outperform against its counterpart given the successful vaccine rollout program so far. This is especially the situation versus the Euro, that has faced supply disruptions with AstraZeneca cutting deliveries by 60 percent in Q1.

Having a look at the technicals, the outlook for EUR/GBP stays weak with last weeks short break below key support at 0.8860 indicating as much. Alongside this, the following bounce back above 0.8900 had been immediately faded, signalling the marketplace is evaporating rallies in the cross. As such, with 0.8860 back in focus, another fracture below places the Jan 21st low in concentrate at 0.8839. On the topside, immunity resides at 0.8900 and 0.8915-20.

GBP PARING FRIDAY'S OVERREACTION
The uptrend remains for GBP/USD with market participants quick to buy the dip. Friday's price action following the weak PMI figures can be described as somewhat of an overreaction and so today's tone is apparently a paring of Friday's selling. Alongside this, although the short-term risks over COVID remain an issue, the Pound proceeds to benefit from the vaccine rollout program, suggesting that economies that have been worst affected, stands to reap the most.