UK inflation data out earlier now shows a similar trend to the US in that it exceeded economists expectations. Consensus was 2.2% and it came in at 2.5%. This created a short term uptick in the strength of Sterling which effectively erased the gains the Dollar had taken on the pound yesterday on the release of their inflation numbers.
Whilst 2.5% is well above the BOE's 2% target, there's very little surprise with the economy moving again and the price of oil getting back to a sense of normality.
From a travel perspective (and for all those wanting to start looking at property abroad again) it looks like the Balearics may go back on the amber list. However, the double jabbed are still good to go from Monday 19th July with few restrictions on return which is encouraging....now it just depends on how welcome the Brits will remain in those countries with the Delta variant picking up pace.
Looking ahead we've got the Chinese GDP data in the early hours of the morning and UK employment rates at 7am tomorrow so keep an eye on GBP/EUR. Hopefully we will see a further strengthening of the job market although furlough starting to wrap up may slow things.
There's also a raft of US data out tomorrow culminating in the FED's chairperson testifying at 2.30pm UK time.
Have a great day and we look forward to our next update.
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Todays Economic Calendar
UK: 11:00 BOE's Saunders speech
GER: Bond auction throughout the day
US: 15:30 EIA crude oil stocks change
US: 19:00 FED's Beige book