GBP

Sterling held onto the gains seen during the last 24 hours amid Covid optimism. Infections dropped to their lowest levels in three weeks as death toll rates halved on Monday. The Pound held above EUR 1,1700 overnight as a result and $1.3800 amid broad based softer Dollar sentiment. Boris Johnson has again rejected Brussels’ latest attempt to iron out problems with the post-Brexit arrangements for Northern Ireland, insisting that the withdrawal agreement signed last year must be renegotiated. A series of proposals published by the European Commission on Monday with the aim of easing implementation of the Northern Ireland protocol were said to be insufficient for the scale of the problems, investors are likely to remain cautious. The CBI trades survey for July will be released at 11.am.

USD
With US stocks/indices having recovered last week’s losses, the Dow Jones index is now close to record highs again, the US Dollar generally losing any ‘safe-haven’ appeal. Investors await the Federal Reserve policy decision and statement tomorrow. Durable goods orders, house price index and consumer confidence data are released later today,

EUR
The Euro opened relatively unchanged having traded either side of $1.1800 in Asia. On a data free day from the Eurozone, tomorrows Fed news is likely to dictate the next move, key resistance is expected at 1.1850 with support at 1.1750.