Super Saturday.

The weekend saw the most significant relaxation of England’s lockdown measures come into force with many bars and pubs opening for the first time. In one of the toughest tests of people’s ability to socially distance, Health Secretary Matt Hancock said speaking to Sky, “I think that from what I’ve seen, although there’s some pictures to the contrary, very, very largely people have acted responsibly.” With the opening of bars and restaurants being linked to increases in infection rates in other countries it is expected that the situation in the UK will be closely monitored.

It is expected this week that the UK Chancellor Rishi Sunak will announce a number of additional stimulus measures targeted at the UK economy in what is being dubbed a “Mini-Budget.”

One measure expected to be announced is a new scheme aimed at motivating businesses to hire and train young employees. The government will offer bonuses of £1,000 to employers who provide traineeships to 18-24 year olds. The scheme is estimated to cost £111 million.

At the weekend The Times reported that the Chancellor would outline plans this week to raise the threshold at which people start paying stamp duty from £125,000 to as high as £500,000. This “stamp duty holiday” is aimed at increasing the number of property transactions being undertaken in the market.

There was also an article in the City A.M. on Sunday that suggested the Chancellor is considering some form of cash handouts similar to what has been used in China and other countries. Cash vouchers of £500 per adult and £250 per child would be issued to spend in sectors worst affected by the coronavirus crisis. Sectors such as hospitality and mortal retail have been identified as possible benefactors of the proposed scheme.

With the “mini-budget” and ongoing Brexit talks it could be a testing week for the pound.

After the 4th of July Weekend celebrations in the US, the markets will shift back to watching for any indications of the state of the economy with ISM Non-Manufacturing Employment Index released today. In what is the key data release for the US this week it could give an indication of any US Dollar movements early on.

As the rising number of coronavirus infections continue to spook the markets gold prices have hit a fresh 7-year high. Gold prices have risen to nearly $1,790 an ounce for the first time since 2012.

Economic Calendar

Expected Previous
01:00 TD Securities Inflation (YoY)(Jun) - 0.10%
01:00 TD Securities Inflation (MoM)(Jun) - -1.20%
06:00 Factory Orders s.a. (MoM)(May) 15% -26.20%
09:00 Retail Sales (YoY)(May) -7.50% -19.60%
13:45 Markit Services PMI(Jun) 46.7 46.7
13:45 Markit PMI Composite(Jun) 46.8 46.8
14:00 ISM Non-Manufacturing New Orders Index(Jun) 44 41.9
14:00 ISM Non-Manufacturing Employment Index(Jun 30.7 31.8
14:00 ISM Non-Manufacturing Prices Paid(Jun 53.9 55.6
14:00 ISM Non-Manufacturing PMI(Jul) 50 45.4
14:30 Bank of Canada Business Outlook Survey - REPORT

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.