Good morning,
The pound has opened the week on the back foot, losing ground slightly throughout Asian trading hours against a host of other major currencies. Over the weekend, UK Health Secretary Matt Hancock was speaking to Sky News where he said “it’s too early to make a final decision on that,” in regards to the ending of Covid related restrictions on the 21st June. With increasing of infections related to the Delta variant, which was first detected in India, it is now the “dominant strain” in England as per the data for the last month per Reuters. He also stressed that the decision is yet to be made and enough time will be given over the decision. This also follows the news over the weekend that as of this week, under 30’s will be invited for their Covid vaccine, which has been shown to be effective against the Delta variant of the virus.
In bad news for the UK economy, firms have warned of shortages for summer essential goods such as garden furniture and camping equipment. Supply issues with global Covid infections and high demand for shipping are all playing a part, as well as the backlog relating to the blockage to the Suez Canal still impacting the global supply chain. The hospitality industry, one of and possibly the worst effected sectors throughout the pandemic, are fighting for the limited goods with other industries. Even if the restrictions were fully lifted, if the supply is not there for the population to spend their earnings, the UK data readings should not be positive over the coming months.
Have a great day.
Jack Nicholls, Relationship Manager.
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