As Prime Minister Boris Johnson urged caution with most legal restrictions on social contact lifted in England, the PM, Chancellor and Health Secretary are now having to isolate themselves with warnings cases will surge and possibly hit up to 200,000 per day in the coming months. Sterling ended last week on a sour note, a combination of rising Covid numbers and tensions with the EU over Northern Ireland not helping its cause. The Pound opened the day trading at weekly lows against the US Dollar and Euro. Bank of England MPC member Haskell speaks at 11am.
USD Risk appetite worsened on Covid concerns amid doubts over the Federal Reserve’s next move. Global stocks/indices ended the week generally lower, the US Dollar held onto moderate gains as a result.
EUR EUR/USD felt pressured around 1.1800, printing a three-day downtrend. Pre-ECB policy decision/statement (this Thursday) also weighed on the pair. The death toll from catastrophic floods in Belgium and Germany has risen to more than 180 as scientists confirm these were caused by global warming.