Today's news headlines:
‘Top Fed official warns Delta variant poses threat to global recovery’. The rapid spread of the Delta variant coupled with low vaccination rates in some countries is enough to stifle the recovery, according to Federal Open Market Committee member, Mary Daly. She pointed to surging cases in the likes of India and Japan and the potential this has to disrupt US activity. Seen as a more dovish member of the Federal Reserve, Daly has reiterated that monetary support in the US should only be tapered once consistent 2.0% inflation and full employment is reached. (Financial Times)
‘UK advertising watchdog to crack down on misleading crypto marketing’. In another clampdown on cryptocurrency, the Advertising Standards Authority has committed to removing harmful adverts relating to the digital asset. Being labeled as a ‘red alert’, the ASA has made a stand, emphasising the threat to consumer protection crypto’s pose. The body is expected to partner with a number of technology companies and implement AI to scan for these potentially damaging adverts, and then shut them down. (Financial Times)
Today's events, rates, and data
The S&P 500 closed 0.86% weaker yesterday, as US bond yields fell to their lowest level since February. In the UK, the FTSE 100 closed 1.68% lower amid worries about the economic recovery, as global Coronavirus deaths topped four million. Cable has stepped off below $1.38 while EUR/USD has also retraced below $1.1850.
China CPI y/y: 1.1% vs 1.3% last month
UK GDP m/m: 0.8% vs 2.0% last month
UK Industrial Production m/m: 0.8% vs -1.0% last month
ECB President Christine Lagarde speaks: 11:00AM
BOE Governor Andrew Bailey speaks: 11:00AM
Canada Unemployment Rate: 1:30PM
GBP/USD – 1.3764
GBP/EUR – 1.1638
EUR/USD – 1.1828
USD/CAD – 1.2532
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