Good morning,

Last week markets plunged on Covid concerns, with GBPUSD dropping to its lowest level since February – this was however reversed towards the end of the week. GBP seems to have started on better footing this week as just under 30,000 new infections were reported on Sunday, a significant fall from almost 50,000 the Sunday before.

Britain has now recorded its fifth consecutive day of dropping Covid – 19 cases since ‘Freedom Day’, but experts do warn that the results of the reopening might not be fully reflected for  another two-three weeks, but the downtrend is a good sign.

The Government are looking to alleviate the economic pressures as a result of the staff shortages created by the “pingdemic”, by guiding those that are pinged but fully vaccinated and asymptomatic to continue working.

Across the pond infections are rising with scientific advisor Dr Anthony Fauci stating the country is going “in the wrong direction”, and these worries will boost the safe haven dollar. Outside of the virus, all eyes will be on the much-anticipated Fed decision on Wednesday. On the one hand fears that the situation is getting worse in the US could refrain the bank from hinting at any withdrawal of stimulus, although on the other inflation is still rising.

Have a good day.

Joseph Sidders, Relationship Manager.

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References

https://www.bbc.co.uk/news/world-us-canada-57962387

https://www.fxstreet.com