Fed begins to budge

Today's news headlines: 

‘Fed moves closer to decision on “tapering” massive stimulus’. The Federal Open Market Committee announced last night that clear progress is being made toward the 2% inflation target, along with full employment, as the American economy continues its Coronavirus recovery. Fed Chairman Jerome Powell has emphasised that there's some way to go before tapering is officially started. It was noted that there are still potential upside risks regarding inflation, however, these price pressures are expected to subside. (Financial Times)

‘Google to require Covid vaccine for workers at US offices’. As the Delta variant continues to spread throughout the US, workers for both Google and Facebook are required to be vaccinated before returning to work. The policy is expected to be rolled out in the US next week before being rolled out globally. The tech sector has so far been one of the fastest sectors to respond to the pandemic, with these offices among the first to close at the onset of the pandemic last year. (Financial Times)


Today's events, rates, and data 

The FTSE 100 nudged 0.29% higher yesterday as travel shares bounced amid news of quarantine-free travel between the UK and EU/US. The S&P 500 finished flat as the Federal Reserve kept monetary policy largely unaffected but with some changes in outlook. Cable is approaching the $1.3950 level this morning while EUR/USD has pushed above $1.1850 as risk-on sentiment builds.

Today's events

Australia Import Prices q/q: 1.9% vs 0.2% previously
German Unemployment Change: 8:55AM
UK M4 Money Supply m/m: 9:30AM
US Advance GDP q/q: 1:30PM
US Unemployment Claims: 1:30PM
US Pending Home Sales m/m: 1:30PM

Interbank rates:

GBP/USD – 1.3933
GBP/EUR – 1.1751
EUR/USD – 1.1857
USD/CAD – 1.2486

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.