More delays to come?

Today's news headlines: 

‘Delta variant begins to spread, threatening EU’s Covid progress’. The Coronavirus variant that has become the dominant strain in the UK has started to spread throughout Europe, with clusters cropping up in Germany, France, and Spain. In Portugal, the Delta variant accounts for almost 96% of new cases, while similar rates are climbing in other European nations. Officials in Europe feel that case rates are rising too quickly, and with not enough vaccinations in the total population, further lockdown extensions are being considered in another potential blow to the recovery. (Financial Times) 

‘HS2 costs rise by a further £1.7bn during pandemic’. The UK’s high-speed rail line has been hit hard during the pandemic. The first phase of the line between London and Birmingham has increased in cost by almost £800m. Construction began last year on the first phase, but the soaring costs associated with the project have come under criticism, especially when the Treasury is already stretched thin with the financial support given out during the pandemic. (Financial Times)  

Today's events, rates, and data 

  • UK markets finished lower on Friday after disappointing Retail Sales data. The FTSE 100 closed down 1.9%, while the FTSE 250 ended 0.94% lower. Cable has continued to drift lower, starting the week just above $1.38, while EUR/USD has nudged below $1.19. 

Today's events

UK Rightmove HPI m/m: 0.8% vs 1.8% last month
Australia Retail Sales m/m: 0.1% vs 1.1% last month
ECB President Christine Lagarde Speaks: 1:30PM and 3:15PM
FOMC Member John Williams Speaks: 8:00PM

Interbank rates

GBP/USD – 1.3808
GBP/EUR – 1.1632
EUR/USD – 1.1876
USD/CAD – 1.2455

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