Pressing the advantage
Today's news headlines:
‘US takes first step towards relaxing Covid travel bans’. As the US emerges from coronavirus restrictions, the Biden administration have set up a group to coordinate travel both to and from the UK, EU, Mexico and Canada. Case numbers have dropped to some of their lowest levels since March last year, creating demand for international travel and further loosening of restrictions. Mass vaccination and low case numbers were targets set by the Biden administration for July 4th and with that date not too far away, the travel industry will be anticipating a decision on travel soon. (Financial Times)
‘Boundary review predicted to shore up Tory gains in northern England’. Constituencies in England look set to change by 2023, with voting boundaries to be redrawn to better reflect population shifts over the years. This reshape looks set to benefit the Conservatives as voter positioning is moved between constituencies as they are made smaller, larger or even removed entirely. Many Tory MP’s have indicated this has improved the outlook of the party and will give a much better hold on recently won seats, in areas such as Darlington and North West Durham. (Financial Times)
Today's events, rates, and data
The S&P 500 rose just 0.02% yesterday as markets await key inflation data later this week. UK markets were mixed on news that lockdown could be extended by another two weeks. Cable has popped back above $1.4175 this morning while EUR/USD continues to hold on at $1.2180.
New Zealand Preliminary ANZ Business Confidence: -0.4 vs 1.8 last month.
China CPI y/y: 1.3% vs 0.9% last month
China PPI y/y: 9.0% vs 6.8% last month
Canada BOC Rate Statement: 3:00pm
US Crude Oil Inventories: 3:30pm
US 10-year Bond Auction: 6:00pm
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