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Johnson and Biden lay out COVID-19 plans

GBP - British Pound

The idea of UK COVID-19 passports has officially been dropped by health secretary Sajid Javid. The plan was to show the passport to prove double vaccination, however larger venues have dropped the idea and may require for entrants to show proof of a negative PCR test still.

Tomorrow Prime minister, Boris Johnson, is scheduled to outline his response to the potential spike in COVID-19 during the winter months, in order to protect the NHS from being overrun. He is expected to reiterate that he currently sees no reason for further lockdowns, however there may be a period in which people are encouraged to work from home and that protective masks will once again become mandatory in certain areas. The pound could weaken on the back of this announcement as investors become nervous about the knock-on effect of COVID-19 on the UK economy.

Key Movers

In an attempt to increase vaccination rollout across the US, President Biden is scheduled to address the public around new vaccination rules. Staff in healthcare systems receiving Medicaid and Medicare funding must be vaccinated, with rare exemptions for medical reasons.

Businesses with more than 100 employees must require either vaccination or weekly testing. In addition, large businesses must offer paid time off for employees and their families to receive the vaccines and recover from any side effects. Improved US vaccine rollout could improve global risk appetite, as investors look to move their positions from the safety of the US dollar to other, higher yielding commodity currencies.

Expected Ranges

GBP/USD: 1.3735-1.3950 ▼

GBP/EUR: 1.1630-1.1800 ▲

GBP/CAD: 1.7420-1.7615 ▼

GBP/AUD: 1.8650-1.8860 ▼