Return of restrictions

Today's news headlines: 

‘European countries bring back Covid restrictions as cases rise’. Coronavirus cases continue to rise on the continent, with Slovakia and the Czech Republic two of the latest countries to re-introduce restrictions. Unvaccinated individuals are set to be banned from public events as the attempts to curb the latest surge in cases build. The work from home order is making a return in Ireland, as is the curfew on pubs operating past midnight, with the country reporting its highest case numbers since January on Monday. (Financial Times)

‘High shipping costs to push up global inflation, UN warns’. Supply chains across the globe continue to be stretched thin, forcing costs higher. The re-opening of economies around the world saw demand far outweigh supply, helping push freight costs five times higher than the average over the last ten years. If these supply issues are to persist, it’s thought global consumer prices can be expected to rise around 1.5% across the board, according to the UN. Some logistic and maritime consultancies forecast that freight rates may not return to normal for the next 30 months. (Financial Times)


Today

The FTSE 100 closed 0.50% lower yesterday as high UK Consumer Price Index data lent support for a more hawkish Bank of England. This also helped strengthen Cable over the last day, with the pair trading above $1.35 this morning. In the US, the S&P 500 drifted 0.26% lower yesterday as announcements from Amazon of halting UK-issued Visa credit card payments weighed on sentiment.

Events

New Zealand Inflation Expectations: 2.96% vs 2.27% previously
Federal Open Market Committee member Raphael Bostic Speaks: 1:00PM
Canada ADP Non-Farm Employment Change: 1:30PM
US Philly Fed Manufacturing Index: 1:30PM
US Unemployment Claims: 1:30PM
FOMC member John Williams speaks: 2:30PM
FOMC member Charles Evans speaks: 7:00PM
FOMC member Mary Daly speaks: 8:30PM


Interbank rates:

GBP/USD – 1.3507
GBP/EUR – 1.1916
EUR/USD – 1.1335
USD/CAD – 1.2605

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