PM Boris Johnson confirmed the government will scrap most of England’s covid rules on the 19th of July, The final decision to scrap any remaining restrictions will be taken next Monday as another 27,000 Delta variant cases were reported yesterday. With UK June PMI readings for the service sector beating consensus yesterday (62.4, expected 61.7), Sterling edged higher across a broad range of currencies as a result. Gains also extended overnight in Asia albeit moderate with resistance levels seen at USD 1.3900 & EUR 1.1700.

The US Dollar has consolidated at these higher levels having seen consistent gains during the last week. Investors are likely to focus on Wednesdays Federal Reserve’s minutes release and the boards general interpretation on inflation. Service sector PMI’s and ISM non-manufacturing readings will be released today.

Key support has so far held against the US Dollar at 1.1850. A close below here would technically suggest lower levels could be seen for the Euro. The ECB will also release their minutes from the last meeting on Thursday. Today brings the latest German & Eurozone ZEW economic survey reports as well as Eurozone retails sales for May.