Four-week delay

Today's news headlines: 

‘Johnson to delay lockdown easing for England on Monday’. The UK’s final stage of easing coronavirus restrictions on the 21st of June looks set to be postponed by four weeks, potentially falling to two if data improves. There were 7,490 positive tests on Sunday compared with 5,341 in the previous week as the Delta variant continued its spread. The government aims to make irreversible changes to the current restrictions; postponing for another four weeks to increase second dose vaccinations appears to be the strategy in place. Hospitality will continue to be strained as another month of operating under full capacity looms. (Financial Times) 

‘Biden rallies western allies in global “contest” against autocrats’. At the recent G7 summit, US President Joe Biden called for ambition from the European leaders to invest in poorer countries throughout the region, much like China have done with the 'Belt and Road Initiative'. The so-called ‘Build Back Better World’ initiative will focus on matters such as green energy and digital technology, but specific plans for funding were not set out. Biden also emphasised the contest that is currently in play between democratic and autocratic governments and whether one could be pulling away in the dynamic 21st century. (Financial Times)

Today's events, rates, and data 

  • Positive UK GDP data helped the FTSE 100 finish Friday 0.65% higher, while the FTSE 250 made similar gains of 0.55%. The S&P 500 hit yet another record high on Friday despite US CPI hotting up. Cable has stepped off, settling just above $1.41, while a similar trend is evident in EUR/USD, with the pair holding just above the $1.21 level. 

Today's events

Japan Revised Industrial Production m/m: 2.9% vs 2.5% last month
Switzerland PPI m/m: 0.8% vs 0.7% last month
Eurozone Industrial Production m/m: 10:00AM
Bank of England Governor Andrew Bailey Speaks: 2:00PM
China Bank Holiday: All day

Interbank rates

GBP/USD – 1.4107
GBP/EUR – 1.1661
EUR/USD – 1.2099
USD/CAD – 1.2157

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