The long road

Today's news headlines: 

‘Jay Powell says Fed still “a long way” from withdrawing monetary support’. Despite the US growth target rising last month, the Federal Reserve have maintained monetary support is unlikely to be tapered this year. With strong economic data and coronavirus vaccination rates pushing confidence, the outlook is looking positive. However, the US labour market remains far behind pre-pandemic levels, with an extra 8.4m people unemployed. Although inflation has seen some jumps in the last couple of weeks, Fed Chairman Jerome Powell has maintained that only when inflation is persistently above 2% will any talk of tapering monetary policy be seriously discussed. (Financial Times)

‘UK orders 60m extra doses of Pfizer vaccine for autumn “boosters”’. Another 60m coronavirus vaccine doses have been acquired by the UK, in anticipation of boosters being needed later in the year. This takes the total number of vaccines procured by the UK to 100m, demonstrating just how aggressive the countries inoculation campaign has been. Studies conducted so far suggest the antibodies created by the Pfizer jab remain active for around six months. This indicates the vaccines are working as intended and will hopefully continue to push down infection rates, facilitating a return to normality. (Financial Times)

Today's events, rates, and data 

  • As the US economy accelerates, the Federal Reserve kept monetary policy unchanged yesterday with the Dow Jones falling 0.48% while the FTSE 100 closed 0.27% higher. Cable has ticked 0.17% higher in early trading as EUR/USD consolidates above $1.21.

Today's events

Spanish flash CPI y/y: 2.2% vs 1.3% last month
German Unemployment Change: 8:55am
US Advance GDP q/q: 1:30pm
US Unemployment Claims: 1:30pm
US Pending Home Sales: m/m: 3:00pm

Interbank rates

GBP/USD: 1.3958
GBP/EUR: 1.1512
EUR/USD: 1.2126
USD/CAD: 1.2307

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