Sterling has remained steady in early trading ahead of the release of the UK PMI services survey later this morning. The pound made some gains yesterday after PM Johnson said there is nothing in the data at the moment to suggest England’s full exit from lockdown restrictions on June 21 cannot go ahead despite fears over the spread of the so called delta variant.


On Wednesday Evening ECB president Christine Lagarde was the latest Central Bank head to dismiss concerns about inflation being driven up by rebounding economic activity and supply constraints. She said the ECB remained convinced that inflation would return to lower levels next year, adding that the pricing pressures were of a temporary nature.


Philadelphia’s Fed President Patrick Harker said yesterday it was time to “think about tapering”. Up until these comments Robert Caplen of the Dallas fed was the lone voice calling for a discussion about reducing the Central Bank’s current $120 Bln bond buying scheme. Harkers comments serve as the first hints that the Fed could be moving towards tightening monetary policy which would support the dollar.

Economic Calendar


9.30 am Markit Services PMI survey
8.30 pm BOE Governor Bailey Speech


1.30pm ADP employment change (May)