As the end of Covid lockdown was yesterday extended to July 19th, due to the Delta variant, Sterling opened today relatively unchanged against the Euro despite early buying (the high being 1.1650), technical support remains at 1.1600. This coincided with confirmation that the free trade deal between the UK and Australia had finally been signed off. Early UK data for April showed average earnings rose above consensus (+5.6% v +4.9%) with claimant count improving (6.2%, previous 7.2%). Short term USD strength however keeps Sterling just above $1.4100 for the time being.

The US Dollar maintained its moderate weekly gains, easing just slightly during the last 24 hours in very tight and rangebound markets. Data released today consists of US producer prices and core retail sales (both for May).

There were no surprises in early German data today, consumer prices for May (m/m) came in as expected at +0.5%. Technical support remains at $1.2100 which was tested on Monday but has held to date.