Today's news headlines: 

‘ECB braced for split on implementing new strategy, Lagarde warns’. European Central Bank policymakers are due to meet next week to discuss a change of guidance on monetary policy, specifically interest rates. The decision of when to wind down stimulus measures has been a divisive one, with many calling for differing time frames. Some have already started calling for some action to be taken after the ECB’s target of 2.00% inflation was met a few months ago. However, ECB President Christine Lagarde still seems unlikely to taper policy in the near term as the wait for persistent inflation continues. (Financial Times)

‘Boris Johnson shifts Covid onus on to companies and individuals’. With most Covid restrictions coming to an end next Monday, Boris Johnson has given people a warning to act with caution to ensure the ‘road map’ is irreversible. The ‘work from home’ message will finally be scrapped, but it’s expected many companies will retain some kind of hybrid working. However, the PM has warned that daily case numbers could hit 100,000 a day and deaths could reach up to 200 per day as the country relaxes most of their Coronavirus restrictions. (Financial Times)

Today's events, rates, and data 

• UK markets were mixed yesterday despite the confirmation that restrictions will be eased on the 19^th of July, the FTSE 100 closed 0.05% higher. In the US, markets continued their record run with the S&P 500 gaining 0.35% and the Nasdaq closing 0.21% higher. Cable is trading around $1.3880 this morning, while EUR/USD is also failing to force any real direction around $1.1850.

Today's events

UK BRC Retail Sales Monitor y/y: 6.7% vs 18.5% last month
Switzerland PPI m/m: 0.3% vs 0.8% last month
BOE Governor Andrew Bailey speaks: 8:30AM
US CPI and Core CPI m/m: 1:30PM
US Federal Budget Balance: 7:00PM
ECOFIN meetings: All day

Interbank rates:

GBP/USD – 1.3887
GBP/EUR – 1.1705
EUR/USD – 1.1862
USD/CAD – 1.2459

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