Fed and inflation? We’ll be watching football
UK construction data showed further growth in new orders, hampered by delivery times lengthening by a record amount and employment increased as did the prices paid.
The Pound failed to move above 1.3900 against the Dollar following the data and dropped when the US market opened at lunchtime as markets were wary over the further increase in infection rates. The main event was late on as the UK government announced lockdown restrictions would be eased further in August, boosting employment levels by reducing the number of people needing to self-isolate. By close of play, Sterling had retreated near to 1.3775 to the Dollar while the Euro settled near 1.1695. After the markets closed Spain took Italy to extra time before losing on penalties.
Sterling opens just above 1.3800 to the Dollar and 1.1675 to the Euro this morning.
The only excitement in the data calendar today will be the release of the Fed meeting minutes after the UK market closes. This should give insight into inflation concerns and perhaps hints of QE tapering, which will influence Dollar strength. Also, England play Denmark in the Euro 2020 semi-finals and esteemed economists have predicted more than 50,000 pints of beer will be sold in pubs during the game.
Wednesday: Australia AiG services; Germany industrial production; France trade balance; Swiss foreign currency reserves; Canada Ivey PMI; FOM minutes.
Thursday: Japan bank lending, current account, Eco watcher sentiment; Swiss unemployment rate; German trade balance; ECB meeting accounts; US jobless claims.
Friday: China CPI, PPI; UK GDP, trade balance, production; France industrial production; Canada employment.