PM Johnson and BoE Saunders in the spotlight

Jeremy Thomson-Cook
Jeremy Thomson-Cook 07 September 2021

GBP: Johnson and Saunders take the stage

EUR: Eurozone likely to remain quiet until Thursday’s ECB meeting

USD: Markets prepare themselves for FED speeches throughout the week

Sterling

Good news for sterling remains slim as UK constructions PMI’s outlined a slowdown in the pace of growth, the reading was published as 55.2 versus the 57.4 expectation. Yesterday also saw MPC member Mann mirroring comments heard from the FED stating the rise in inflation is transitory and not forced by demand. If Saunders mimics Mann’s comments this morning, sterling could be in for a poor day. Placing the MPC aside, todays focus will be on PM Johnson as he is set to announce proposals later today in parliament to reform social care and long-term funding arrangements for the NHS.

Euro

The Eurozone had a quiet day yesterday with no data releases to note and minimal market moves. Today we have German ZEW economic sentiment released at 10am along with employment numbers and revised GDP figures, this however, will likely elicit minimal market reactions ahead of Thursdays ECB policy announcement.

USD

Being Labour Day yesterday, markets remained quiet and rangebound. 10-year bond yields push close to recent highs once again pushing to 1.34% in Asia overnight. Data wise, expect another quiet day from the US, however markets await the multiple FED speakers throughout the week.

Elsewhere

Overnight, the RBA stuck to their plan to taper bond purchases by a week, however uncertainty surrounding the Delta variant has delayed their plan to review purchases in November until February giving the AUD another knock back.

Market rates

Today’s Interbank Rates at 09:28 against sterling. Movement vs yesterday.

Euro €1.164 
US dollar $1.381 
Australian dollar $1.864 
South African rand R19.76 
Japanese yen ¥151.9 

Have a great day.