{"id":6329,"date":"2021-06-29T12:11:04","date_gmt":"2021-06-29T12:11:04","guid":{"rendered":"https:\/\/lanjaronproperty.com\/?p=6329"},"modified":"2021-06-29T12:11:04","modified_gmt":"2021-06-29T12:11:04","slug":"this-weeks-currency-news-7th-june-2021","status":"publish","type":"post","link":"https:\/\/lanjaronproperty.com\/this-weeks-currency-news-7th-june-2021\/","title":{"rendered":"This Week\u2019s Currency News \u2013 7th June 2021"},"content":{"rendered":"
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After a week of anticipation, the non-farm payroll report came in at a slightly disappointing level and encouraged sellers of the dollar to reappear. With employment rising at a lower than expected 559,000, the pace of the recovery in the US and the subsequent tightening of economic policy is starting to be questioned by investors. However, on closer analysis, the problem is not a lack of jobs but a reluctance to return to the workforce. This hesitancy by workers is leading to a squeeze on wages, although there are nearly 8 million fewer people employed than at the start of the pandemic. This combination of factors presents the Federal Reserve and the currency markets with a problem. The market perceives that the Federal Reserve should be starting to tighten policy to control inflation but is boxed in until employment drops.<\/span><\/p>\n Looking ahead into this week, events are likely to be dominated by worries over a possible surge in Covid cases in the UK caused by new variants, inflation concerns, and the monthly meeting of the European Central Bank on Thursday. With new variants occurring and cases increasing, there have been doubts cast over the further lifting of restrictions on June 21st. Still, with most of the country\u2019s businesses open, the damage caused by delay is more likely to be psychological and damage confidence. However, with travel restrictions increasing and the chances of a vacation abroad receding, the euro may become increasingly vulnerable as the southern European countries miss out for a second summer in a row on the UK holidaymaker boosting the local economies. The G7 summit meeting also takes place this week at Carbis Bay in Cornwall to discuss the world\u2019s economic fightback<\/span><\/p>\n UK<\/span><\/p>\n The pound flew the flag for the G10 currencies last week against the strengthening dollar and has opened this morning at $1.4140 whilst staying relatively strong against the euro at \u20ac1.1620. However, with the government\u2019s Matt Hancock saying yesterday that they were \u201cabsolutely open\u201d to delaying the next stage on the roadmap to normality and concerns over the efficiency of the vaccines, worries will start to mount about whether consumer confidence has returned too early. If these fears grow, sterling could well begin to drift lower as the concerns of a stagnant economy and rising inflation come to the fore. this week Andy Haldane is slated to speak, who is always thought-provoking and maybe more so than usual as he is soon to be free from the current constraints of his current role as Chief Economist of the Bank of England. On Friday, we will be studying how the economy is performing when both Industrial and Manufacturing data are released, along with a snapshot of April\u2019s Gross Domestic Product.<\/span><\/p>\n