Theresa May yesterday waded in on the debate on the US trade tariffs opening up a potential political backlash. The Prime Minister has told President Trump that new US steel and aluminium tariffs are ‘unjustified and deeply disappointing’. Downing Street said Mrs May underlined the need to safeguard jobs and they agreed to discuss it further at the G7 meeting. The US tariffs of 10% on aluminium and 25% on steel from the EU, Canada and Mexico have been widely condemned. French President Emmanuel Macron has called Mr Trump to tell him the tariffs were "illegal", while Canadian Prime Minister Justin Trudeau has said the US move is "totally unacceptable". At the weekend, China – which was not impacted by last week’s announcement said that all trade talks between Beijing and Washington would be void if the US set up trade sanctions.

The UK retail sector received a welcome boost overnight when news emerged that shoppers, pub goers and gardeners spent vigorously in May. The British Retail Consortium found total sales rose 4.1% on the year bouncing back from a disappointing 3.1% drop in April. Judging by the indicators that performed well its almost certain the weather played its part in the boost however food sales also played their part showing the best single months performance since July 2013. Barclaycard also reported that spending growth was strong in garden centres and fashion retailers, as well as in pubs. 

We’ve a busy day on the data front today with Services PMI due for release from the Eurozone and the UK at 09.00 and 09.30 respectively. EU Retail Sales then follows at 10am. As if the day wasn’t busy enough this afternoon we also have the final US Services PMI data released at 14.45. Another one to keep an eye out for is the Bank of England’s Jon Cunliffe who is due to speak at 11am. Busy day for all!

Not long remains until the first game kicks off in Russia for World Cup 2018. The hosts open the proceedings with a game against Saudi Arabia, whilst that may not get pulses racing, (unless you have either team in a sweepstake) Saturday 16th June surely will. Saturday consists of four live games which pretty much means most football fans will be glued to the TV from 11am when France kick off their tournament until 21:30. Spare a thought for my girlfriend as I am taking her away to Dublin for the weekend for her birthday and she is blissfully unaware that there are four games I’d like to watch. I’ve managed to convince her to watch France and Argentina, but Croatia vs Nigeria on a Saturday night is going to be a tough sell! Even if Nigeria are the second largest consumers of Guinness (and quality Guinness at that, Guinness connoisseur will tell you). The World Cup takes place over the next month and has two games during working hours each day. Do not fear, whilst others might be in the pub, the Investec dealing team will not be taking their eye off the (FX) ball and will be on desk and ready to assist with anything you might require, please give us a call on 0800 055 6339.