Normality in sight

Today's news headlines: 

‘UK consumer spending rises above pre-pandemic levels for first time in 2021’. Since the UK economy began re-opening on the April 12th, spending patterns have bounced back to pre-pandemic levels. The re-opening of non-essential stores and hospitality has encouraged consumers to spend cash built up during the lockdown, with clothing experiencing some of the largest expansion in the younger age bracket. This jump in spending is a good sign for the UK economy, which the Bank of England have predicted could grow 7.25% this year. (Financial Times)

‘Johnson gives go-ahead to further lockdown easing in England’. The UK looks on track to begin its next phase of re-opening next week, with pubs and restaurants now able to serve customers inside.  Social distancing will also be relaxed between families but will remain in force in highly populated areas such as public transport, shops and the workplace. However, Johnson has given numerous hints that social distancing measures could be removed altogether come June, a huge indication that the end of restrictions is in sight. (Financial Times)

Today's events, rates, and data 

  • The cyber attack on a major US fuel pipeline sent US stocks lower yesterday, with the S&P 500 finishing the session down 1.04% and the Nasdaq also down 2.55%. Cable has nudged above the $1.41 level on optimism surrounding the UK’s easing of coronavirus restrictions.

Today's events

China CPI y/y: 0.9% vs 0.4% last month
Eurozone ZEW Economic Sentiment: 10:00am
Australia Annual Budget Release: 10:30am
Bank of England Governor Andrew Bailey Speaks: 3:30pm

Interbank rates

GBP/USD: 1.4114
GBP/EUR: 1.1629
EUR/USD: 1.2137
USD/CAD: 1.2099

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