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3 Minutes to Read tmsnrt.rs/2egbfVh* Graphic: World FX Rates in 2020 Since the Brexit referendum, the sterling has been trade-weighted. tmsnrt.rs/2hwV9Hv (Reuters) – LONDON, July 15 (Reuters) – Even as COVID-19 infection rates rose, sterling fell more versus the dollar and euro on Thursday, ignoring another batch of positive economic statistics and focused instead on the coming removal of activity curbs. Global markets were in a state of flux as strong economic data and firm profitability, on the one hand, were countered by rising viral caseloads, particularly in Asia. From next Monday, the United Kingdom will lift all COVID-related activity restrictions, including the requirement to wear a mask. While two-thirds of British individuals are completely vaccinated, scientists warn that if limitations are lifted, another wave of illnesses, particularly from the more transmissible Delta form, will inevitably occur. The fear appears to be outweighing signals that the economy is recovering quickly from the lockdowns. According to the data, 356,000 jobs were gained in June compared to May, and headline wage growth was the quickest in the year to May since records began in 2000. The figures come after data released on Wednesday revealed that inflation rose to 2.5 percent in the year to June, above the central bank’s objective. The Bank of England is expected to boost interest rates to 0.25 percent by August 2022, according to market expectations. However, at 0835 GMT, sterling had fallen 0.3 percent against the dollar to $1.382, retreating from two-week highs set earlier in the week. It also fell 0.3 percent against the euro, to 85.6 pence, edging away from three-and-a-half-month highs reached on Wednesday. Sterling appears to be pricing in the fact that the economy is reopening too soon, according to Justin Onuekwusi, portfolio manager at Legal & General Investment Management. Markets were also pressed by hints of discord between the central government and regional and transportation authorities, with the latter group anxious to keep some limitations in place, he said. “A few months ago, it appeared that the UK was much ahead in terms of vaccinations,” Onuekwusi explained, “but what the market was not anticipating was the growth in the Delta variety.” There are also fears about the end of job subsidies, which supported 2.4 million jobs at the end of May but will be phased off by the end of September, causing unemployment to rise once more. Sujata Rao contributed reporting, and Angus MacSwan edited the piece./nRead More

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