Closing the gap

Today’s news headlines:

‘Barnier to hold fisheries talks in bid to break Brexit deadlock’. The EU’s Chief Negotiator, Michel Barnier, is due to hold pivotal talks with key EU fishing states in an attempt to break the deadlock with the UK over the sector. This comes after Boris Johnson and Ursula von der Leyen agreed on Saturday to intensify trade negotiations to pass an accord before the deadline. The two leaders have agreed to hold frequent direct calls, while Mr Barnier and his UK counterpart, David Frost, will resume talks on Wednesday in London. (Financial Times)

‘Trump calls for deal on new fiscal stimulus’. Despite being struck down with the coronavirus, President Trump has Tweeted out calling for a bipartisan fiscal stimulus deal that will support the US economy into the November election and beyond. Treasury Secretary Steven Mnuchin, and Nancy Pelosi, the Democratic House speaker, are leading the negotiations, but it’s unclear whether a deal is more likely now than it has been in recent weeks. Congressional Republicans have been reluctant to pass any aid above $1tn, whereas the Democrats have called for a package worth at least $2.2tn. (Financial Times)

Today's events, rates, and data 

  • European and US stock futures rose overnight along with Asian shares on the news that Trump may be discharged from hospital as early as Monday. The Pound continues to fluctuate on conflicting Brexit headlines, despite concrete progress having been made on issues including state aid. 

Today's events

Australian NAB Business Confidence: -4 vs -8 previously
Eurozone final Services PMI: 9.00am
UK final Services PMI: 9.30am
Eurozone Sentix Investor Confidence: 9.30am
US ISM Non-Manufacturing PMI: 3.00pm

Interbank rates:

GBP/USD: 1.2920
GBP/EUR: 1.1020
EUR/USD: 1.1725
USD/CAD: 1.3280