UK's PM, Boris Johnson, could ease lockdown before May 7th deadline – The Telegraph

Ross J Burland FXStreet

The Telegraph writes that the UK's prime minister Boris Johnson could ease lockdown before May 7th deadline.

Lead paragraphs

Boris Johnson is expected to announce plans for easing the lockdown as early as this week after he returned to Downing Street on Sunday night to take full-time control of the coronavirus crisis.

The Prime Minister will on Monday morning chair his first meeting of the Covid-19 “war cabinet” since he was taken to hospital more than three weeks ago, and is ready to resume his role hosting televised Number 10 press conferences.

Allies have hinted that he could decide to "modify" elements of the lockdown before the May 7 deadline as he is increasingly bullish about the possibility of altering restrictions if scientific advice allows for it.

One ally of Mr Johnson said: “May 7 is the day when the Government is legally obliged to review the lockdown measures but if Boris wants to change the restrictions earlier than that, or at least announce something before that, then he could go sooner...

In earlier news, reported also by the Telegraph, Boris Johnson has told aides that he is "raring to go" ahead of his return to Downing Street on Monday. More on that here:

Boris Johnson is “raring to go” ahead of his return to Downing Street – Telegraph

GBP/USD update

GBP/USD Forecast: How long can it hold on? UK lockdowns and gloomy US data may bring it down

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD holds 0.7000 amid bullish USD

AUD/USD is defending 0.7000 at the start of a new week, trading near its lowest level since August 4 amid a bullish US Dollar. US yields hold near multi-year highs amid inflation risks from higher oil prices and rising bets on an October Fed rate hike. This, along with the US-Iran standoff, continues to underpin the safe-haven buck and weigh on the pair ahead of Tuesday's RBA policy announcements.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold cracks $4,200 for the first time in eight weeks

Gold falls hard at the start of a new week, breaching $4,200 for the first time in eight weeks. Firming October Fed rate-hike bets, along with oil-driven inflation risks, keep US bond yields elevated near multi-year highs, helping the US Dollar regain positive traction amid persistent Iran risks. These factors weigh heavily on the bullion.

Week ahead: Rate hike bets face a crucial data week

Despite the solid drop from the mid-September high, oil prices remained in the driver’s seat for another week, setting the tone in financial markets. Six months have passed since the late-February start of the US-Iran conflict, and there is still no breakthrough in the stalled talks, despite pressure from regional leaders and the rest of the world.

After the Trump Xi summit, markets are trading three clocks

The summit delivered time, not a deal. Trade, oil and chips now each run to a date, and the macro backdrop matters more than the pageantry. Markets wanted a deal and got a calendar date instead. Xi Jinping left Washington on Friday after tea at the White House and a tour of the National Archives.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.