Infection rates in focus

Today's news headlines: 

‘UK government buoyed by data showing fall in Covid infections’. The UK recorded 29,173 cases of Coronavirus on Sunday, much lower than the 48,161 cases reported just last week. Despite the lifting of restrictions, case numbers are falling at their fastest rate since February. The slowdown in cases could provide businesses with some respite from the ‘pingdemic’ as many employees have been forced to self-isolate. The Government is preparing for a lift in case numbers as the forecasted consequences of Freedom Day begin to take hold. Early projections are expecting a peak in case numbers around mid-August. (Financial Times)

‘US considers tightening mask guidance for vaccinated Americans’. Surging infections fueled by the Delta variant have created some unease in Washington. The vaccination campaign has slowed in recent weeks, with low uptake areas now under pressure from rising case numbers and higher hospitalisations. In May, vaccinated Americans were no longer required to wear a mask in indoor settings, a rule it seems could soon be reversed as the CDC decides on measures to control another rise in cases. (Financial Times)


Today's events, rates, and data 

The S&P 500 closed 1.01% higher on Friday after a positive week for US corporate earnings. Cable has been trading range-bound this morning while EUR/USD has been nudging higher. It’s a quiet day for data, but Bank of England Monetary Policy Committee member Gertjan Vlieghe’s comments will be watched closely for a sign of a hawkish tilt by the central bank.

Today's events

Japan flash Manufacturing PMI: 52.2 vs 52.4 last month
Bank of Japan Core CPI y/y: 0.1% vs 0.0% last month
MPC member Gertjan Vlieghe speaks: 12:00PM
US New Home Sales: 3:00PM

Interbank rates:

GBP/USD – 1.3747
GBP/EUR – 1.1670
EUR/USD – 1.1779
USD/CAD – 1.2579

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