Following the weekends events from the G7 meeting in Cornwall, it appears that relations over Northern Ireland between the EU and UK have worsened somewhat. Foreign Secretary Dominic Raab said the EU must ‘respect’ that Northern Ireland is part of the UK and end its ‘lopsided’ approach to applying the protocol. It is widely rumoured today, PM Boris Johnson plans to delay 21st June lockdown lift to 19th July as the Delta variant tripled in a week. Sterling however is relatively unchanged against the Euro opening at last week’s highs despite this news, but weaker against the generally firmer US Dollar.
USD The US Dollar ended the week on a stronger footing across the board. Recent above consensus US inflation readings, slightly weaker stock/indices and comments from the G7 leaders scolding both Russia and China over bullying and human rights abuses saw the Dollar strengthen by close of business on Friday.
EUR The Euro is currently testing short term technical support at $1.2100. A close below here would indicate further downward potential for the common currency is possible. Generally, weaker Eurozone economic data and comments from the ECB’s Lagarde at last week’s press conference stating that ‘FX appreciation was a drag on inflation’, has not helped the common currency’s cause. Latest Eurozone industrial production is the only major data due today.