Brexit boost for Sterling

Today’s news headlines:

‘UK and EU to resume talks in final push for post-Brexit trade deal’. The EU and UK have agreed to embark on a final phase of intensified Brexit negotiations, in a bid to reach a trade deal by mid-November. The breakthrough came in a call between the chief negotiators on each side, Michel Barnier and David Frost. EU officials will travel to London today to get the talks under way, with negotiations expected every day until a deal is reached. The news boosted Sterling, which traded over 1.31 against the Dollar for the first time since early September. (Financial Times)

‘Fed official warns economic disparities may hold back US recovery’. A top Federal Reserve official has warned that economic disparities could threaten to hold back the US recovery. Lael Brainard called for Congress and the White House to provide more fiscal support and for the US central bank to maintain its loose monetary policy. Fiscal support will need to be targeted to those who need it most for a broad-based and inclusive economic recovery. Ms Brainard is considered a possible candidate to take a top economic post if Joe Biden is elected as President next month. (Financial Times)

Today's events, rates, and data 

  • A decline in the US Dollar gathered pace yesterday after politicians inched closer to agreeing on a second major fiscal stimulus package for the world’s largest economy. Brexit positivity also helped Sterling reach a six-week high against the Greenback. Overnight, US and European equity futures continued their decline, along with Asian shares.

Today's events

German Gfk Consumer Climate: -3.1 vs -1.7 previously
UK MPC Member Haldane Speaks: 9.30am
UK BoE Gov Bailey Speaks: 10.25am
US Weekly Jobless Claims: 1.30pm
US CB Leading Index: 3.00pm

Interbank rates:

GBP/USD: 1.3140
GBP/EUR: 1.1085
EUR/USD: 1.1855
USD/CAD: 1.3155