Travel sector pressured

Today's news headlines: 

‘Ministers consider keeping some Covid measures in England after July 19’. As the UK edges closer to a full relaxation of Coronavirus restrictions, some ministers are contemplating whether certain measures should remain beyond the July 19th date. Voluntary mask wearing is expected to continue while also being compulsory on public transport. Event organisers will also have the option to only allow those people that are double jabbed or have tested negative for Covid into the event. While reminders of the pandemic will remain, these measures look to be the responsibility of the people to exercise their own caution after government led restrictions end. (Financial Times)

‘Delta variant leaves southern Europe struggling to save summer tourism’. The Delta variant is beginning to cause issues in Europe, as countries such as Spain try to weigh the threat of the virus with the very real strain the lack of tourism is putting on the economy. A drop of 80% in tourism revenues from last year is placing a large amount of pressure on the countries in the South of Europe with many clambering for the travel industry to unlock. The EU will launch the digital vaccination certificate scheme on Thursday with the hope that this will facilitate travel inside the bloc. (Financial Times)


Today's events, rates, and data 

  • A bounce in US consumer confidence failed to drive markets yesterday with the S&P 500 only rising 0.03% on the day. UK house price growth continues to accelerate with average price of a home rising 13.4% year on year to June. Cable weakened 0.27% yesterday, the pair is currently trading below $1.3850 this morning. 

Today's events

China Manufacturing PMI:                          50.9 vs 51.0 last month

Japan Consumer Confidence:                    37.4 vs 34.1 last month

Eurozone CPI Flash Estimate y/y:             10:00AM

US ADP Non-Farm Employment Change: 1:15PM

Canada GDP m/m:                                     1:30PM

US Crude Oil Inventories:                           3:30PM

Interbank rates:

GBP/USD – 1.3846

GBP/EUR – 1.1636

EUR/USD – 1.1901

USD/CAD – 1.2385

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