GBP

Sterling’s struggles continued last week as concerns around profit-taking and the AstraZeneca vaccine took its toll.

This is despite the UK government pledging once again to offer a vaccine to every adult in the country by the end of July. However, under 30s will now be offered an alternative to the controversial AstraZeneca vaccine. The jab’s blood clot concerns have cast doubt on the UK’s vaccine roll out. This in turn casting doubt on the economy’s recovery.

The UK took a big step out of lockdown today. Restaurants and pubs that offer outdoor seating, gyms and non-essential shops are now allowed to reopen. But this is unlikely to cause any short term bounces for the pound as this date has been in the diary for a while. 

Economic data over the coming months may, however, provide a boost as the UK’s economic expected recovery begins to gather pace throughout the summer.

USD

The dollar is struggling too, failing to raise itself from recent two-week lows against most G10 currencies. Employment figures disappointed late last week and the Federal Reserve remains unmoved on its ultra-easy monetary policy.

Fed chair Jerome Powell once again stated that policy would not shift until there is a prolonged spell of strong economic data, with another member stating he does not believe the Fed should discuss changes until the pandemic is over. While we are seeing mixed data from the US it’s hard to see any significant changes in policy.

Key announcements

09.00- (EUR)- EU retail sales