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January in the Markets.

Bank of England Reports Published in January 2021

PRA Regulatory Digest – January 2021 – Read the report

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.

Asset Purchase Facility Quarterly Report – 2020 Q4 – January 2021 Read the report

This report contains information on the Bank of England’s Asset Purchase Facility (APF) for 2020 Q4, describing operations from 1 October 2020 to 31 December 2020.

CP2/21 – International banks: The PRA’s approach to branch and subsidiary supervision – January 2021 Read the report

This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of the UK

Brexit: How much disruption has there been so far?

From: The BBC

It’s been a month since the UK stopped following EU rules and started trading under a new system agreed by both sides in a post-Brexit trade deal.

It means lots of changes, which are being felt at the borders – and in other areas too.

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British Pound Outlook: Bank of England and Covid-19 will Drive GBP Price Action

From: Daily FX

This Thursday the Bank of England will announce its latest monetary policy decision and release its quarterly MPC report.

The BoE is expected to leave all policy measures untouched, but the quarterly report should be monitored closely for the latest look at the health of the UK economy.

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Sterling Finds Support from Virus Response

The pound sterling moved higher against the US dollar as Forex traders await news from the Federal Reserve Chairman.

Expectations are that the US government will finally approve a large fiscal stimulus package under the Biden administration which, analysts say, would improve risk sentiment in general.

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Lockdowns in 2021 threaten to slow first-quarter earnings recovery globally

A major chunk of the global recovery in companies’ earnings expected in the first quarter is at risk of being pushed back further as lockdowns and mobility restrictions in several countries cloud hopes of a swifter economic rebound, investment banks said.

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U.S. economy growing modestly but virus tempers optimism, Fed says

U.S. economic activity increased modestly in recent weeks and a growing number of the Federal Reserve’s districts saw a drop in employment as a surge in coronavirus cases led to more shutdowns of businesses, the U.S. central bank said on Wednesday.

In the Fed’s latest “Beige Book” report, a collection of anecdotes from businesses across the country, Fed officials revealed how the pandemic’s imprint varied by region and industry as rising infections dampened the optimism promised by the arrival of effective coronavirus vaccines.

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FX Rates in January

GBP/EUR

Jan High: 1.1325
Jan Low: 1.1026
Jan End: 1.1325

 

GBP/USD

Jan High: 1.3745
Jan Low: 1.35
Jan End: 1.3705

 

EUR/USD

Jan High: 1.233
Jan Low: 1.2076
Jan End: 1.2101