Market Information Friday 5 February 2021

The Bank of England decided on Thursday to leave its policy rates unchanged. In addition, the Bank announced that it will not lower interest rates below zero on short notice. Banks are asked however, to prepare for the possibility of negative interest rates in the future. As a result of the interest rate decision, the British pound increased significantly against the euro and the dollar.

Retail sales in the eurozone increased by 2.0 percent, measured by volume, in December 2020 compared to November 2020. On an annual basis, sales increased with 0.6 percent. This follows from figures published by the European statistics agency Eurostat on Thursday. In November 2020, retail sales in the eurozone decreased by 5.7 percent compared to October 2020.

The German statistics agency Destatis published figures on Friday showing that German factory orders decreased by 1.9 percent in December 2020 compared to November 2020. Economists had anticipated a decrease of 0.8 percent. On an annual basis, factory orders increased by 6.7 percent in December 2020 compared to November 2020.

The 6M Euribor increased with 1 basis point to -0.52% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.13% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.