Rates as of 0500 GMT
In the absence of any major news or economic indicators, the main theme in the FX market Friday was the rise in US Treasury bond yields, which pushed up US yields relative for foreign bond yields and pushed the dollar higher.
US 10year yields started rising from the beginning of the London day, while yields of most other G10 countries with the exception of Canada moved lower. The dollars widening yield advantage pushed USD higher.
The move up in US yields was somewhat reinforced by a betterthanexpected U of Michigan consumer sentiment survey, although the oneyear inflation expectations unexpectedly moved lower to 4.0 from 4.6, whereas it was expected to rise to 4.7.
Currencies have somewhat followed the change in the spread over US Treasuries over the last week.
The big feature for today isnt an indicator. Its whether UK PM Johnson decides to end all social restrictions in the country from June 21st. An announcement is due today. Its looking like maybe its going to be a no. According to the BBC, the PM has warned that any lifting has to be irreversible. A delay of up to four weeks is said to be possible.
Although UK new cases are a lot lower than they used to be at the peak in January there were nearly 60,000 new cases a day!! nonetheless the direction recently is worrying. Hospitalization levels are also up, especially in areas where the new Delta variant has been spreading among the unvaccinated. Fortunately, Britain has…