A little more time
Today's news headlines:
'Sunak delays UK economy plan to allow for "right decisions'". The Government's fiscal plan has been pushed from October 31st to November 17th to allow more time for the Prime Minister and Chancellor to make the 'right decisions' on managing the economy. Jeremy Hunt commented that the delay would give the Treasury the best chance of giving people security over their mortgages, jobs and cost-of-living concerns. Markets have continued to react well to the new Government, with Sterling hitting the $1.16 interbank level for the first time since early September. (Bloomberg)
'Paying the bills gets harder in key battleground US states'. With just two weeks to go until the midterm elections, more and more US families are struggling to pay everyday bills, especially those in key battleground states of Nevada, Arizona, and Georgia. Democrats are fighting to hold on to a razor-thin majority in the Senate, but the Republicans are strongly favoured to take control of the House. The trajectory of the Biden presidency would be dramatically altered if the GOP wins the Senate, with the increased chance that spending rows lead to government shutdowns in the future. (Bloomberg)
Risk rallied for much of yesterday's trading session on growing expectations of more moderated US interest rate hikes. Currencies benefitted from broad-based Dollar weakness, but today's European Central Bank meeting could provide a source of volatility as we anticipate detail on future quantitative tightening.
German Gfk Consumer Climate: -41.9 vs -42.8 previously
UK CBI Realized Sales: 11.00AM
ECB Main Refinancing Rate: 1.15PM
ECB Monetary Policy Statement: 1.15PM
US Advance GDP q/q: 1.30PM
US Advance GDP Price Index q/q: 1.30PM
US Durable and Core Durable Goods Orders m/m: 1.30PM
ECB Press Conference: 1.45PM
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.