Markets
GBP
Sterling is lower against the dollar and higher against the euro overnight. The government has cancelled plans to introduce vaccine passports at nightclubs and major events amid fears of backlash from libertarian Conservative MPs and opposition parties. Health Secretary, Sajid Javid, told the BBC on the Sunday that the certification for jabs would not be introduced by the end of September as previously announced. Boris Johnson has now said he will bring forward a “toolbox” of options to help the country avoid having to enter an autumn or winter lockdown. The UK has cancelled an agreement with French-based biotech company Valneva for the supply of 100 million doses of Covid-19 vaccines. The UK government said Valneva was in breach of its obligations under the €1.4bn deal.
EUR
The euro is lower against most majors in early morning trade. The optics are looking good for the Social Democrats ahead of Germany’s Chancellery elections this month. Olaf Scholz emerged as the clear victor according to viewers in a three-way leaders debate on Sunday night. The Social Democrats (SPD) are up 6% in the polls and a blitz poll after the debate had Scholz leading the candidate across metrics from likeability to competence. The European Parliament is due to debate Fit for 55 in Strasbourg on Tuesday morning, its landmark climate change package, amidst the economic and political realities of rising energy prices across the bloc for citizens.
USD
The dollar is well-bid against most major currencies overnight. California will vote whether to oust a Democratic governor, Gavin Newsom on Tuesday who plans to introduce statewide shielding policies to safeguard citizens from Covid-19, amid anger across the country over Covid-19 restrictions. House Democrats expect to propose raising the corporate tax rate to 26.5% from 21% and imposing a 3-percentage-point surtax on individual income above $5 million, according to two House Democratic aides familiar with the plans. The tax increases would be part of the House Ways and Means Committee’s plans to pay for the party’s priorities in a fast-moving budget bill.
Ballinger & Co. Morning Report–13th September 2021
Today’s Rates
GBP>EUR – 1.1719
GBP>USD – 1.3813
EUR>USD – 1.1786
GBP>CAD – 1.7508
GBP>AUD – 1.8769
GBP>SEK – 11.948
GBP>AED – 5.0738
GBP>HKD – 10.744
GBP>ZAR – 19.571
GBP>CHF – 1.2715
Today’s Calendar
· USD Monthly Budget Statement(Aug)
Today’s Highlights
· Forex Today: Dollar marches higher on cautious mood amid inflation concerns, China’s techlash
· EUR/USD Forecast: More falls? German uncertainty, China’s techlash add to long list of worries
· German economy ministry: GDP growth to pick up significantly in Q3
· GBP/USD pressured toward 1.38 on damp market mood
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