Here we go again...

‘US weighs sanctions on Chinese officials, firms over Hong Kong’. President Trump’s administration is considering a slew of new measures to punish China and its officials for their latest attack on the freedoms of Hong Kong citizens. The Treasury department could freeze the assets of officials and businesses or place controls on transactions. The US must also weigh up whether to declare that Hong Kong is no longer an autonomous state, a move which could see it lose its special trade status. (Bloomberg)
‘UK economy faces 5% annual deficit by 2024, say economists’. A treasury survey of independent economists has suggested that the coronavirus pandemic will leave lasting economic scars on the UK’s public finances, meaning Britain will run an annual budget deficit of 5% by 2024. These forecasts are in stark contrast with the optimistic forecasts of the OBR and BoE, whose scenarios predict little persistent damage. Meanwhile, MPs are committed to Boris Johnson’s 'no return to austerity' message, easing the pressure on chancellor Rishi Sunak over how to fund the virus recovery programme. (Financial Times)

The US Dollar lost around 1% of its value yesterday as prospects for more global stimulus, including a large Japanese package, overshadowed the latest US-China flare-up. The Yuan tumbled along with stocks in China and Hong Kong, and oil dipped on reports that Russia was preparing to scale back supply cuts from July. Overnight, the S&P 500 and FTSE 100 futures both rose.

ECB President Lagarde speaks 8.30am

GBP/USD: 1.2317
GBP/EUR: 1.1235
EUR/USD: 1.0965