Sterling has failed once again to break through its highest levels reached this year against the dollar. Brexit worries are surfacing again after a report published yesterday by researchers at Aston University in Birmingham, found that UK services exports between 2016-2019 were up to £113 Bln lower than expected. The researchers calculated how industries like IT and business services would have grown had they continued in their previous trajectories compared with how they have actually progressed since the Brexit vote. Brexit minister Lord Frost speaking yesterday to business communities in Northern Ireland has called on the EU to show more “common sense“ when dealing with the problems arising from the Northern Ireland protocol, adding that he believes the protocol is not sustainable for long in the form it is currently operating.


Data released this morning showed German retail sales fell sharply last month. The figures came in at 4.4% for April versus 10.1% seen in March and well below the 11% expected. Governor Christine Lagarde is due to speak later today at the European Central Banks virtual conference.


The ISM manufacturing Purchasing Managers Index released yesterday showed a resilient economy and persistent price pressures indicating that the Federal Reserve’s Bank may have to taper their bond-buying scheme sooner if inflation rises too fast. However, several Fed members repeated the Centrals banks mantra that monetary policies should remain accommodative for a longer period after the data’s release.

Economic Calendar

EUR : PPI 10.00am
ECB’s Christine Lagarde Speech 21.40