Ongoing talks between the EU & UK over Northern Ireland’s protocol and the import of British goods ended yesterday without any agreement (again). As a result, Sterling lost ground across a broad range of currencies once confirmed, falling 1 cent versus the US Dollar and 0.5 cent v Euro (from Wednesday’s highs). Preceding the opening of the G7 meeting in Cornwall today, US President Biden and PM Johnson will discuss these Northern Irish issues and there will likely be statements released by both leaders.

The Dollar ended firmer at close of play ahead of the latest round of US inflation readings (CPI), stocks/indices also eased prior to today’s data release. Recent data has confirmed inflation is still rising above expectations in the USA, however, this to date has had little impact on the Dollar’s longer term downward trend.

The ECB are expected to leave monetary policy unchanged today. As the latest EU economic readings of late have disappointed, the main topic for investors will probably be the press conference and any comments made over the ECB’s pace of tapering of PEPP purchases and of course economic forecasts.