Boris Johnson yesterday confirmed that the 19th of July would be ‘Freedom Day’ for the UK, though the pound failed to capitalise on the news. The EUR continues its weak run against the dollar after dovish comments from ECB’s Lagarde, underperforming stocks and rising Covid cases in the EU.
Though restrictions in the UK are set to be removed, it’s not quite the ‘Freedom’ investors were expecting as the rise in cases has pushed the government to advise that face coverings should be worn in some enclosed spaces, amongst a few other ‘suggestions’. GBPEUR held above 1.1700 and EURUSD is finding some comfort around the 1.1850 mark.
Today we see US CPI figures released at 13:30. US CPI is forecast to drop from 5% to 4.9% but investors are not expecting rate changes based on this, their eyes are set on the rise in coronavirus cases globally. Cases in America have risen 94% in the past two weeks, increasing the possibility of further restrictions. A number of countries in the EU have already imposed further restrictions to curb the rising infection rate which historically has benefitted the USD as a safe-haven currency.
Have a great day.
Thomas Read, Senior Relationship Manager.
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