A new approach

Today’s news headlines:

‘City of London seeks to "reinvent itself" after pandemic’. Government leaders are taking their learnings of the Covid-19 lockdown to heart and planning a new role for the city which includes flexible working as the core of its vision. Flexible office space, affordable small business offices, improved and expanded cycling routes are just the beginning of the changes envisaged as the new competitive edge to keep the city alive post Covid and post Brexit. (Financial Times)

‘Banks in Hong Kong advised to report security law breaches to police’. Under the new controversial national security law in Hong Kong, the Hong Kong Monetary Authority has issued new rules surrounding money-laundering and terrorist financing. They are thought to be somewhat vague and may lead to the most conservative interpretation of the rules by financial institutions, resulting in another cudgel against protestors or political dissidents. (Financial Times)

Today's events, rates, and data 

  • The tough talk surrounding Brexit negotiations has been weighing down the Pound, though it remains just below the 100-day trade weight moving average. David Frost has rebuffed the EU’s attempt to renew Brexit talks saying there was no reasonable basis to continue unless the EU made clear it was changing its approach. The US also seems to be moving towards a compromise on the stimulus package, though we have our doubts that this will come in before the election. It is quite light on the data front today, but political news should keep us rather busy.

Today's events

JP Machine Tool Orders y/y: -15% vs -15% last month
JP Convenience Store Sales y/y: -3% vs -5.5% last month
EU German PPI y/y: -1.4% vs -1.2% last month
CA National Bank HPI y/y: 1:30pm
US Housing Starts: 1:30pm
US Building Permits: 1:30pm

Interbank rates:

GBP/USD: 1.2925
GBP/EUR: 1.0990
EUR/USD: 1.1765
USD/CAD: 1.3200