GBP

As PM Boris Johnson is set to reveal today the final details of lockdown easing in England, Sterling closed at the weekly highs against the Euro on Friday (EUR 1.1660 & USD 1.3820). However, just days after a three month pause on the Northern Irish trade dispute was agreed, Irish foreign minister Simon Coveney accused the UK of wanting to dismantle the protocol ‘piece by piece’ following comments from UK Brexit minister David Frost. Frost stated the agreement was ‘welcome’ but ‘addressed only a small part of the underlying problem’. UK June PMI readings for the service sector are released at 9.30 this morning.

USD
As US non-farm payrolls for May beat expectation (+850k, expected +700k), the USD retreated from the weekly highs albeit moderately so, stocks closed as a result on a positive footing. Investor sentiment leans towards a firmer US Dollar this week although there is no US data due today.

EUR
The Euro remains under pressure across a broad range of currencies as key technical support of $1.1850 has so far managed to hold. Forecasts from ECB officials on interest rate expectations due to weaker inflation readings has done little to help the Euro’s cause.