Today's news headlines: 

‘Sunak optimistic as pace of economic recovery picks up’. The number of people on furlough dropping by 560,000 has been met with optimism as signs of recovery in the UK economy begin to emerge. Coronavirus case numbers are on the downtrend, with Goldman Sachs reporting that economies with higher vaccination rates should be able to cope living with the virus, irrespective of the level of infection in the country. The International Monetary Fund’s latest forecast indicates 7% growth in the UK this year, but pre-pandemic levels of output aren't expected until at least 2022. (Financial Times)

‘Gas crunch sends prices hurtling higher’. The global supply of natural gas has been squeezed over the last year, with prices in the UK and Europe reaching some of the highest levels since 2005. Russia—one of the largest suppliers—has slowed production and restricted the supply of gas to Europe, with some believing this is a move to secure the construction of the Nord Stream 2 pipeline. Having economies rebound from the pandemic has also hit supplies, with the demand for natural gas soaring as businesses reopened. (Financial Times)

Today's events, rates, and data 

The S&P 500 closed 0.42% higher yesterday, despite worse-than-expected US GDP data. Robinhood finished the day 8.40% lower in a disappointing initial public opening for the broker. Elsewhere, the Nasdaq Golden Dragon China Index is set for its largest monthly decline since 2008, after falling 22.00% in July. Cable is trading just above $1.3950 this morning, while EUR/USD is approaching $1.19.

Today's events

Japan Unemployment Rate: 2.9% vs 3.0% last month
Japan Retail Sales y/y: 0.1% vs 8.3% last month
Germany Preliminary GDP q/q: 9:00AM
Eurozone Unemployment Rate: 10:00AM
Canada GDP m/m: 1:30PM
US Core PCE Price Index m/m: 1:30PM
US Chicago PMI: 2:45PM
US Revised UoM Consumer Sentiment: 3:00PM

Interbank rates:

GBP/USD – 1.3943
GBP/EUR – 1.1740
EUR/USD – 1.1878
USD/CAD – 1.2453

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