GBP

Late US Dollar demand on Monday saw Sterling fall to weekly lows at 1.3860 today having closed in New York below the pivotal $1.3900 level. As Covid cases rose by 70% during the last week, new health minister Sajid Javid said there will be no early lifting of Covid restrictions but sees no reason to ‘go beyond’ the 19th of July. Against the Euro, the Pound is relatively unchanged having traded in a very tight range overnight as key support is seen at EUR 1.1600. UK June mortgage approvals & consumer credit data will be released at 9.30am.

USD
As treasury yields rose yesterday on news that President Biden had agreed with Congress an increase in government spending to the tune of $1.2 trillion over 8 years, the Dollar rallied albeit moderately across a broad range of currencies. New spending accounts for $580 billion of this. The latest US June consumer confidence figures will be released at 3.00pm.

EUR
Dollar strength has so far failed to see the Euro trade below $1.1900 ahead of German inflation data for June (CPI), released at 1.00pm.