GBP

With exception to the US Dollar, Sterling opens at the upper end of its trading range this week against a broad range of currencies. The soon departing Bank of England chief economist Andy Haldane, said inflation could reach 4% by the year end, this is double the central banks original forecast. As the tapering of Britain’s furlough scheme commences today, economists will be monitoring the effect this is likely to have on employment over the coming months. EU and UK officials have also agreed to a three-month extension to the chilled meats grace period in Northern Ireland. June purchasing managers index (PMI) will be released at 9.30am.

USD
US Dollar strength persists having broken significant trend lines across a broad range of currencies this week as inflation kicks in. This has to date had little impact in stocks/indices as they rallied again on Wednesday. Data due today: Manufacturing PMI’s (1.30pm) and the more important US manufacturing ISM data for June (3pm). Non-farm payrolls are released tomorrow.

EUR
As Eurozone headline inflation shows no signs of rising, the Euro has declined across the board, now testing the major support level of 1.1850. Indications suggest further Euro weakness could be likely. Today sees the release of Eurozone manufacturing PMI’s (June) and the unemployment rate for May.