The US economy contracted much less than initially feared last year and it is on train to rebound this year as the rapid rollout of highly effective vaccines, substantial levels of fiscal spending and a rundown of household savings boosts growth.

Growth forecasts for the global economy have being revised upwards over the spring. The OECD now sees the world economy expanding by 5. 6% this year, compared to 4. 2% in its previous update.

Sterling appreciated steadily during the opening quarter of 2021, mainly due to the rapid rollout of Covid-19 vaccines in the UK – but other countries are beginning to catch up

Near-term prospects for economy are favourable but a close eye needs to be kept on likely changes this year to the global corporate tax regime

Industry sources suggest that new supply this year could be down by between 15% to 20% on 2020 levels, a supply deficit that will put further upward pressure on property prices

Vaccinations are also becoming an important influencer in currency markets

Despite central banks' reassurances,  markets fear that rising inflationary pressures could see interest rate hikes commence as early as next year in major economies

Recoveries from recessions usually take much longer than this. However, this is a unique cycle.

Thursday’s ECB Council meeting will be important for both bond and currency markets

All the ingredients are in place for a period of robust US growth