A bit of a juke

Today’s news headlines:

‘Johnson heralds UK green investment to meet climate targets’. As the furlough scheme wraps up at the end of October, Boris Johnson hopes to turn the conversation in a more positive direction by unveiling new green spending ambitions to the tune of £160m for wind turbine construction and new initiatives for hydrogen fuel and carbon capture. (Financial Times)

‘Rishi Sunak commits to strong public finances and warns of ‘hard choices’’'. Rishi Sunak is perhaps the most popular member of the Tory party and, based on one poll, the most liked member of Boris Johnson’s cabinet. Knowing that his state aid packages have made him supremely popular, he delivered a speech to warn people that the other ‘fiscal tightening’ shoe will drop and went a step further by throwing his support behind the PM. (Financial Times)

Today's events, rates, and data 

  • We’ve seen a bit of a risk rally overnight though headlines all seem relatively typical, as we judge typical in these times. The President has returned to the White House after three days, despite the spreading outbreak amongst the staff, in a bid to save face before the upcoming election. Several central bankers have been speaking, and others will talk later today. FOMC Member Loretta Mester suggested she is happy with the current monetary stimulus path, while Charlie Evans would like to see inflation well beyond the 2.0% target before tapping the breaks. More to come later today.

Today's events

CN  Bank Holiday
EU  German Factory Orders m/m: 4.5% vs 3.3% last month
AU  Annual Budget: 9:00AM
UK  Construction PMI: 9:30AM
EU  ECB Lagarde Speaking: 9:35AM and 2:00PM
US  Fed Chairman Powell Speaking: 3:40PM
US  FOMC Harker Speaking: 4:45PM
US  FOMC Kaplan Speaking: 11:00 PM

Interbank rates:

GBP/USD – 1.3000
GBP/EUR – 1.1020
EUR/USD – 1.1790
USD/CAD – 1.3255