Today's news headlines:
‘Merkel presses Biden over lifting Covid-related Europe travel ban’. Travel between the US and Europe has been banned since the early stages of the pandemic and with the recent emergence of the Delta variant, it looks like these restrictions could drag on. The Biden administration will look to come to a decision in the next few days. Unlocking travel will provide countries such as Portugal and Spain some much-needed respite as the pandemic has choked the travel sector in Europe. The decision will ultimately rest on whether the infection rates are moving in the right direction. With many countries still under restrictions, the picture is not a particularly encouraging one. (Financial Times)
‘NHS Covid app “pings” 520,000 a week telling them to self-isolate’. The Delta variant is creating some disruption as over 500,000 people have been told to self-isolate in just one week, with factories and shops beginning to feel the burden of the subsequent labour shortages. Ministers have debated whether to ask people to self-isolate after spending more extended periods with those with Covid or reduce the amount of time spent in isolation. Some have even called for the app to be scrapped along with the rest of the restrictions on the 19th of July. (Financial Times)
Today's events, rates, and data
The UK unemployment figure ticked higher yesterday to 4.8% from 4.7% last month. Weak jobs data and the rising expectations of higher oil supply pushed the FTSE 100 1.12% lower on the day. In the US, the S&P 500 finished the day down 0.33%. Cable continues to lack any direction, trading in the $1.38 range this morning.
Bank of Japan Interest Rate: -0.10% vs -0.10% previously
Eurozone final CPI and Core CPI y/y: 10:00AM
US Retail and Core Retail Sales m/m: 1:30PM
US Preliminary UoM Consumer Sentiment: 3:00PM
US Business Inventories m/m: 3:00PM
GBP/USD – 1.3823
GBP/EUR – 1.1707
EUR/USD – 1.1807
USD/CAD – 1.2576
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