Sterling is lower against the dollar and the euro overnight. Scotland’s First Minister, Nicola Sturgeon has announced that her government will draw up a detailed prospectus for Scottish independence but did not announce a date for passing legislation which would pave the way towards a second referendum on leaving the United Kingdom. The UK has been accused of undermining its global leadership on climate change if it opens the first deep coal mine in decades in the country at Woodhouse Colliery. Environmental campaigners have vocally opposed the project in an effort to embarrass the UK government ahead of the COP26 Summit in Glasgow in November.
The euro is higher against sterling but lower against the dollar in early morning trade. The European Commission is increasing pressure on Warsaw and its Law and Justice Party (PiS) by ordering the ECJ to impose daily fines on Poland for backsliding on the rule of law. The EU could go further stripping Poland of its voting rights as an EU Member State or withholding EU funding for regions passing anti-LGBTQ+ resolutions. Angela Merkel used one of her final appearances in Parliament to urge voters to back her CDU successor, Armin Laschet to prevent the Social Democrats and the Greens forming a left-leaning government in Germany with Die Linke or The Left, a socialist party comprised by a motley crew of East German political ideologies.
The dollar is well-bid against most major currencies overnight. The Biden Administration’s plans to administer booster shots of the Covid-19 vaccine in September have been mired in a confusion of regulatory approvals, eligibility, logistics and funding concerns. Two weeks remain until the rollout of third booster shots are due to be rolled out, yet uncertainty over timing and implementation of the programme could cause delays. The University of Michigan and US Labor Department have made initial forecasts that the US economy could slow down in September, despite expectations that this month would see an uptick in consumer spending and a decline in labour shortages.
Ballinger & Co. Morning Report– 08th September 2021
GBP>EUR – 1.1635
GBP>USD – 1.3812
EUR>USD – 1.1822
GBP>CAD – 1.7458
GBP>AUD – 1.8692
GBP>SEK – 11.600
GBP>AED – 5.0522
GBP>HKD – 10.700
GBP>ZAR – 19.714
GBP>CHF – 1.2647
· CAD BoC Rate Statement
· CAD BoC Interest Rate Decision
· GBP BoE Monetary Policy Report Hearings
· Forex Today: Dollar stands tall amid Delta covid variant, US stimulus woes, Bitcoin stabilizes
· GBP/USD remains on the defensive below 1.3800 amid USD strength
· ECB: Rates seen unchanged, focus shifts to QE – UOB
· ECB’s Holzmann: Central bank could be tightening policy quicker than markets expect
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