Thursday’s ECB meeting was largely a non-event for currency markets. Meanwhile, sterling continued to hold its own, with investors encouraged by the UK’s rapid vaccination progress.

The euro and sterling both rallied against a broadly weaker US dollar on Wednesday ahead of today’s presidential inauguration ceremony.

Will US Treasury Secretary nominee Janet Yellen talk up the need for greater fiscal stimulus today?

The dollar managed to rally against most of its major peers last week, aside from sterling that has benefitted from the UK’s rapid vaccination progress. Attention this week now turns to Thursday’s ECB meeting.

President-elect Biden announced plans for a massive US stimulus programme on Thursday, although the dollar fell after dovish comments from Fed chair Powell.

The dollar edged higher against its peers as investors await details of President-elect Joe Biden’s long-awaited US fiscal stimulus plans.

Sterling jumped against its major peers on Tuesday as Bank of England governor Bailey talked down the need for negative interest rates in the UK.

Last week’s chaotic scenes in Washington failed to trigger much reaction in financial markets. Investors are instead focusing on the latest COVID numbers and progress towards mass vaccinations.