Stuck in the middle

Today's news headlines: 

‘Johnson examines partial lifting of England lockdown restrictions’. On Wednesday, positive coronavirus case numbers made their biggest week on week jump since February, with a rise of 7,540 cases. The Delta variant is said to be driving this rise, with some reports suggesting the variant is present in almost three quarters of new cases. The PM has a tough decision to make in the coming days. Johnson will need to decide whether to unlock the country fully and rely on the vaccination rate but risk a third wave, or delay easing of restrictions and face rebellion from Tory MPs and many others up and down the country. (Financial Times)

‘Joe Biden to press Boris Johnson to end bitter Northern Ireland stand-off’. Biden is due to meet Johnson today in Cornwall and is expected to pressure the PM into finding a solution to the stale talks regarding Northern Ireland. The US have voiced their support of the Good Friday Agreement and its importance in keeping peace in the region. With no real solution yet to be found that will facilitate trade without the need for a hard border, disagreements could come to a head in the coming weeks, especially as exemptions for trade are due to run out at the end of the month. (Financial Times)

Today's events, rates, and data 

  • US markets finished the day softer yesterday ahead of CPI data today, with the S&P 500 falling 0.18%. Brexit uncertainties have resurfaced which helped the FTSE 100 fall 0.2% yesterday. Elsewhere, Cable has fallen back to the $1.41 support level, as inflation fears crept back into markets with the latest PPI figures out of China.

Today's events

French Industrial Production m/m: -0.1% vs 1.0% last month
Italian Industrial Production m/m: 9:00am
Eurozone Monetary Policy Statement: 12:45pm
MPC Member Andy Haldane Speaks: 1:05pm
ECB Press Conference: 1:30pm
US CPI and Core CPI m/m: 1:30pm
US Unemployment Claims: 1:30pm

Interbank rates

GBP/USD: 1.4109
GBP/EUR: 1.1596
EUR/USD: 1.2169
USD/CAD: 1.2110

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