Today's news headlines: 

‘UK economy grows at fastest pace since last summer’. The UK economy outperformed during April thanks to the easing of coronavirus restrictions boosted by strong retail sales, the highest since last summer. The output in May is expected to follow a similar pattern, with indoor seating in pubs and restaurants being possible. This boosts GDP to 4.2% in the second quarter in estimates published by the Bank of England. With the possibility of a delay in the relaxing of all coronavirus restrictions on 21^st June, although worrying, it is unlikely to have a huge impact on the economy according to some economists. (Financial Times)

‘US consumer prices climb at the fastest pace since 2008’. Consumer prices reached their highest levels for almost 13 years in the US in May. CPI moved from 4.2% in April to 5% in May raising the alarm bells that the economy could be on its way to overheating. Many central bank officials have issued statements suggesting these effects are merely transitory and inflation levels will start to move back in line despite the short supply and surging demand. (Financial Times)

Today's events, rates, and data 

• The S&P 500 finished 0.47% higher yesterday despite these fresh inflation concerns, while the Dow Jones also crept 0.06% higher on the day. Cable has bounced over the last day above the $1.4150 level, while trading around the €1.1620 level against the Euro, following muted comments from the European Central Bank yesterday.

Today's events

UK Construction Output m/m: -2.0% vs 5.8% last month
UK GDP m/m: 2.3% vs 2.1% last month
UK Industrial Production m/m: -1.3% vs 1.8% last month
Bank of England Governor Andrew Bailey Speaks: 9:30am
Preliminary UoM Consumer Sentiment: 3:00pm
G7 Meetings: All Day

Interbank rates

GBP/USD: 1.4175
GBP/EUR: 1.1634
EUR/USD: 1.2184
USD/CAD: 1.2087

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