Today's news headlines: 

‘Labour shortages bite advanced economies though many still out of work’. Although unemployment remains above pre-pandemic levels across many economies, the speed of hiring is proving difficult. In the UK, some are apprehensive to pursue employment due to the safety of the furlough scheme and the possibility of future lockdowns. While in the US, a pool of almost 10 million unemployed is not translating into consistent hiring in the hospitality sector. This has led some to speculate that pay increases could be on the way to try and lure people into these roles. (Financial Times)

‘UK government to clarify Covid advice for eight areas hit by variant’. With infection rates of the India variant creeping up in a number of localised areas, the UK government will look to announce some guidance for these communities to slow the spread. This includes meeting outside and avoiding travel where possible. It has been emphasised that these are not new regulations but rather advice in addition to the national restrictions in place currently. Testing has been increased in the eight areas affected with the hope of bringing the strain under control. (Financial Times)

Today's events, rates, and data 

• Stocks were mixed yesterday with the UK release of public sector borrowing reaching its second highest April level since 1993, and the FTSE closing 0.31% lower as a result. Sterling has since weakened against the Dollar back to the $1.4150 level while the Euro continues to make marginal gains against the Dollar, trading close to $1.2250.

Today's events

New Zealand Official Cash Rate: 0.25% vs 0.25% previously
Credit Suisse Economic Expectations: 9:00am
FOMC Member Randal Quarles Speaks: 3:00pm & 8:00pm
US Crude Oil Inventories: 3:30pm

Interbank rates

GBP/USD: 1.4157
GBP/EUR: 1.1560
EUR/USD: 1.2249
USD/CAD: 1.2049

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